•  $&rV\<L«.  C-oY  Oor  air\an 

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STANDARD 

OIL 

STOCKS 


TOTSHYOF  PUrfits  LIEHARV 


r£p 


1  ii*17 


FIFTEENTH  EDITION 

MAY,  1917 

"  /  i  J  ' 

■  -  '  L  /  ' 


TABLE  OF  CONTENTS 


Dividend  Record  . . 

Foreword  . . . 

Anglo-American  Oil  Company,  Ltd.... 

Atlantic  Refining  Company . . 

Borne  Scrymser  Company . 

Buckeye  Pipe  Line  Company. . 

Chesebrough  Manufacturing  Company. 

Colonial  Oil  Company . 

Continental  Oil  Company . 

Crescent  Pipe  Line  Company . 

Cumberland  Pipe  Line  Company,  Inc.. 

Eureka  Pipe  Line  Company . 

Galena-Signal  Oil  Company . 

Illinois  Pipe  Line  Company . 

Imperial  Oil  Company,  Ltd . 

Indiana  Pipe  Line  Company . 

International  Petroleum  Company,  Ltd 

Market  Range  . 

National  Transit  Company . 

New  York  Transit  Company . 

Northern  Pipe  Line  Company . 

Ohio  Oil  Company . 

Penn-Mex  Fuel  Company . 

Pierce  Oil  Corporation . 

Pierce-Fordyce  Oil  Association . 

Prairie  Oil  and  Gas  Company . 

Prairie  Pipe  Line  Company . 

Solar  Refining  Company . 

Southern  Pipe  Line  Company. . 

South  Penn  Oil  Company . 

South  West  Pennsylvania  Pipe  Lines.  . 
Standard  Oil  Company  of  New  Jersey. 
Standard  Oil  Company — California 

Standard  Oil  Company — Indiana  . 

Standard  Oil  Company — Kansas  . 

Standard  Oil  Company — Kentucky  .  .  .  . 
Standard  Oil  Company — Nebraska 
Standard  Oil  Company- — New  York  .  .  . 

Standard  Oil  Company — Ohio  . 

Swan  and  Finch  Company. . . 

Union  Tank  Line  Company . 

Vacuum  Oil  Company . 

Washington  Oil  Company .  . . 


Page 
.3-11 
12-22 
.  24 
.  26 
.  30 
.  31 
.  33 
.  34 
.  35 
.  3G 
37 
.  39 
.  41 
.  43 
.  S3 
.  45 
.  S5 
.  GO 
.  47 
.  50 
.  52 


56 

68 

64 

67 

69 

71 

73 

74 
76 
73 
92 
99 

102 

103. 

105 

106 
no 
112 
113 

u\ 

IIS 


u 


DIVI^ENb  RECORD 

1912-1913-1914-1915-1916-1917 

ANGLO-AMERICAN  OIL  COMPANY 

Capital  Stock,  £2,000,000.  Par  £1, 

Capital  Stock  to  November  26,  1913,  £1,000,000. 


<3 

*/  Dividends,  1917- 

cP 

C4 


1916- 


-January  15 .  10%  $945,000 

-January  15 . * .  10%  945,000 

July  15 .  10%  945,000 


Dividends  1915 


1 


January 

July 


1. 

1. 


10% 

10% 


$973,330 

973,330 


20%  $1,946,660 

Dividends  1912 

April  15....  10%  $486,650 
July  16 10%  486,650 


Dividends  1914 

January  15.  10%  $973,330 

July  15.  10%  973,330 

20%  $1,946,660 

Dividends  1913 

January  15.  15%  $729,975 


July 


15, 


10% 


486,650 


20%  $973,300 

Earnings,  1915,  32%%.  Surplus,  $10,170,596. 


25%  $1,216,625 

Bk.  Val.,  $9.95. 


ATLANTIC  REFINING  COMPANY 

Capital  Stock,  $5,000,000.  Par  $100. 


Dividends,  1917 — March 

15 . 

$250,000 

1916  . 

.  20% 

1,000,000 

1915  . 

.  20% 

1 ,000,000 

1914  (Initial, 

Dec.  15) _ 

.  5% 

250,000 

Earnings.  1916,  192.5%.  Surplus,  $33,976,192.  Bk.  Val.,  $779.52. 


BORNE  SCRYMSER  COMPANY 

Capital  Stock,  $200,000.  Par  $100. 


Dividends,  1916— October  15 . 

Dividends  1915 

Oct.  15...  20%  $40,000  Oct. 

Dividends  1912 

Dec.  20 .  20%  $40,000  Oct. 


.  20%  $40,000 

Dividends  1914 
15...  20%  $40,000 

Dividends  1913 


15 


20% 


$40,000 


6T 

r 

o 

o~ 

V 

i/ 

o 

T 


THE  BUCKRYE  PIPE  LINE  COMPANY 

Capital  Stock,  $10,000,000.  Par  $50. 

Dividends,  1917 — March  15 . 

June  15  . 

1916  . 

1915  . 

1914  . 

1913  # . 

1912  . 

Earnings,  1916,  20.8%.  Surplus,  $9,430,910. 


4% 

$400,000 

4% 

400,000 

16% 

1,600,000 

16% 

1,600,000 

28% 

2,800,000 

40% 

4,000,000 

40% 

4,000,000 

Bk.  Val.,  $97.15. 

Dividend  Record 


t 


CHESEBROUGH  MANUFACTURING  COMPANY 

Capital  Stock,  $1,500,000.  Par,  $100. 

Capital  Stock  to  June  10,  1916,  $500,000.  Par,  $100. 


Dividends,  1917— March  19 .  3 %% 

1916  . 10%  and  10%% 

1916  .  200% 

1915  .  40% 

1914  .  40% 

1913  . • . .  40% 

1912  .  .  50% 


$52,500 

207.500 

Stock 

200,000 

200,000 

200,000 

250,000 


CONTINENTAL  OIL  COMPANY 


Capital  Stock,  $3,000,000.  Par  $100. 
Capital  Stock  to  June  1913,  $300,000. 


Dividends,  1917— March  16 .  3%  $90,000 

1916  .  12%  360,000 

1915  .  12%  360,000 

1914  .  12%  360,000 


Dividends  1912 

Feb’y  28 .  50%  $150,000 

Nov.  20 .  20%  60,000 


Dividends  1913 


Sept.  16 .  3%  $90,000 

Dec.  16 .  3%  90,000 


70%  $210,000 


6%  $180,000 


Earnings,  1915,  51.4%.  Surplus,  $2,716,644.  Bk.  Val.,  $190.55. 


CRESCENT  PIPE  LINE  COMPANY 


Capital  Stock,  $3,000,000.  Par  $50. 


Dividends, 

1917- 

1916 

1915 

1914 

1913 

1912 

—March 

15 . 

.  iy2% 

6% 

6% 

9% 

12% 

.  12% 

$45,000 

180,000 

180,000 

270,000 

360,000 

360,000 

Earnings, 

1916, 

6.43%. 

Surplus,  $362,684. 

Bk.  Val., 

$56.04. 

CUMBERLAND  PIPE  LINE  COMPANY 

Capital  Stock,  $1,000,000.  Par  $100. 

Dividends,  1916 — December  18 .  5%  $50,000 

Dividends  1915  Dividends  1914 

Dec.  15...  5%  $50,000  Dec.  15...  5%  $50,000 

Dividends  1912  Dividends  1913 

Dec.  16 .  6%  $60,000  Dec.  15 .  6%  $60,000 

Earnings,  1916,  17.9%.  Surplus,  $256,960.  Bk.  V'al.,  $125.69. 


EUREKA  PIPE  LINE  COMPANY 

Capital  Stock,  $5,000,000.  Par  $100. 


Dividends,  1917 — February  1 .  6% 

May  1  .  6% 

1916  .  24% 


Dividends  1915 


Feb.  2 .  6%  $300,000 

May  1 .  6%  300,000 

A.ug.  2 .  6%  300,000 

Nov.  1 .  6%  300,000 


24%  $1,200,000 


$300,000 
300,000 
1,200,000 
Dividends  1914 


Feb.  2 .  10%  $500,000 

May  1 .  8%  400,000 

Aug.  1 .  8%  400,000 


Nov.  2 _ •  6%  300,000 


32%  $1,600,000 

1 


Dividend  Record 


6 


Dividends  1012 


Dividends  1913 


10% 

$500,000 

Feb’y  1 _ 

. .  10% 

$500,000 

10% 

500,000 

May  1 . .  . , 

,  .  10% 

500,000 

10% 

500,000 

Aug.  1..., 

.  .  10% 

500,000 

Nov.  1 . .  .  . 

.  10% 

500,000 

May  1 
Aug.  1 
Nov.  1 


30%  $1,500,000 

Earnings,  1916,  26.44%.  Surplus, 


40%  $3,000,000 

$4,553,887.  Bk.  V'ak,  $191.07. 


/ 

GALENA  SIGNAL  OIL  COMPANY 


Preferred  Common  Par 

Capital  Stock  .  $2,000,000  $12,000,000  $100 

Capital  to  May  15,  1913  2,000,000  8,000,000  100 

Dividends,  1917 — March  31 .  3%  $360,000 

1916  .  12%  1,440,000 


1915  .  12%  1,440,000 

1914  .  12%  1,440,000 


Dividends  1912 — (Common)  Dividends  1913 — (Common) 


March 

30. .  . 

4% 

$320,000 

March 

31 

*% 

$320,000 

June 

30. .  . 

4% 

320,000 

June 

30 

3%  &  1% 

480,000 

Sept. 

30. . . 

4% 

320,000 

Sept. 

30 

3% 

360,000 

Dec. 

31... 

4% 

320,006 

j_»ec. 

31 

3% 

360,000 

16% 

$1,280,000 

4%  &  10% 

$1,520,000 

NOTE — Preferred  stock  has  paid  2%  ($40,000)  quarterly. 
Earnings,  1916,  15%.  Surplus  and  Reserves,  $1,776,555.  Book 
Value,  $114.80. 


ILLINOIS  PIPE  LINE  COMPANY 

Capital  Stock,  $20,000,000.  Par  value,  $100. 
Dividends,  1916  Dividends,  1915 


Jan. 

15. 

.  .  15 

% 

*$3,000,000  July  20.. 

.  5% 

$1,000,000 

June 

24. 

.  .  12 

% 

2,400,000 

Dec. 

19. 

.  .  12 

% 

2,400,000 

Earnings, 

1916, 

24. 

15%.  Surplus,  $365,241. 

Bk.  Val 

.,  $101.82. 

♦January  dividend  is  paid  from  and  charged  against  pre¬ 
vious  year’s  earnings. 


INDIANA  PIPE  LINE  COMPANY 


Capital  Stock,  $5,000,000.  Par  value,  $50. 


Dividends, 

1917 — February  15.. 

6% 

$300,000 

May  15 .....  . 

4% 

200,000 

1916  . 

*16% 

800,000 

Dividends  1915 

Dividends  1914 

Feb. 

12.  . 

4%  $200,000 

Feb. 

14. .  .  . 

8% 

$400,000 

May 

15.  . 

4%  200.000 

May 

Ifo ...  . 

8% 

400,000 

Aug. 

14. 

.  .  .  4%  200,000 

Aug. 

14  ...  . 

6% 

300,000 

Nov. 

15. 

4%  200,000 

Nov. 

14.  . . . 

5% 

250.000 

16%  $800,000 

27% 

$1,350,000 

Dividends  1912 

Dividends  1913 

May 

15.  , 

6%  300,000 

Feb’y 

15.  . .  . 

8% 

$400,006 

May 

15.  .  .  . 

8% 

400,000 

Aug. 

15.  . 

6%  300,000 

Aug. 

15.  . .  . 

8% 

400,006 

Nov. 

15.  . 

8%  400,000 

Nov. 

15.  .  .  . 

8% 

400,006 

20%  $1,000,000 

32% 

$1,600,006 

Earnings,  1916,  26%.  Surplus.  $2,477,075.  Bk.  Val.,  $74.77. 
“February  dividend  is  paid  from  and  charged  against  pre¬ 


vious  year’s  earnings. 


I 


6 


Dividend  Record 


NATIONAL  TRANSIT  t'OMl’ANl 
Capital  Stock  .  $6,362,500.  Par  value,  $12.50 


Capital  Stock  to  April  1,  1916.. 

Dividends,  1916 — April  1 . 

December  15. 

Dividends  1915 


$12,727,572.  Par  value,  $25.01) 

.  50%  $6,363,786 

.  4%  254,500 

Dividends  1914 


March  15  . . . 

2% 

$254,551 

March  16 . . . 

3% 

$381,827 

June 

15. . . 

2% 

254,551 

June 

15.  . . 

3% 

381,827 

Sept. 

15.  . . 

2% 

254,551 

Sept. 

15 .  .. 

3% 

381,827 

Dec. 

16. .  . 

2% 

254,551 

Dec. 

15.  .  . 

3% 

381,827 

8% 

$1,018,204 

12% 

$1,527,308 

Dividends— 1913  .  12%  $1,527,308 

1912  . .  12%  1,527,308 

Earning's,  1916,  19%.  Surplus,  $3,369,298.  Bk  Val.,  $19.11. 


NEW  YORK  TRANSIT  COMPANY 


Capital  Stock,  $5,000,000. 
Dividends,  1917 — January  15. 

April  14 ... . 

1916  . 

Dividends  1915 


Par  value,  $100. 
.*4%  and  2%  extra 
.  4% 

.  16% 

Dividends 


$300,000 
200,000 
800,000 

1914 


Jan. 

15. 

5% 

$250,000 

Jan. 

15... 

10% 

$500,000 

April 

15. 

4% 

200,000 

April 

15. . . 

10% 

500,000 

July 

15. 

4% 

200,000 

July 

15.  .  . 

8% 

460,000 

Oct. 

15. 

4%  * 

200,000 

Oct. 

15.  . . 

6% 

300,000 

17% 

$850,000 

34% 

$1,700,000 

% 

Dividends  1912 

Dividends  1913 

April 

16. . 

.  .  10% 

500,090 

Jan’y 

April 

15... 

15... 

.  10% 

.  10% 

$500,060 

500,060 

July 

16.  . 

. . .  10% 

500,000 

July 

16. . . 

.  10% 

500,000 

Oct. 

15. . 

. .  10% 

500,000 

Oct. 

15.  .. 

.  10% 

500,000 

30% 

$1,500,000 

")  40% 

$2,000,000 

Earnings, 

1916,  26.78%.  Surplus, 

$5,537,950. 

Bk.  Val.,  $210.76. 

♦January  dividend  is  paid  from  and  charged  against  pre¬ 
vious  year’s  earnings. 

NORTHERN  PIPE  LINE  COMPANY 

Capital  Stock,  $4,000,000.  Par  value,  $100. 

Dividends,  1917 — January  3 
191G  . 

1915  .  10% 

1914  .  10% 

1913  .  10% 

1912  . 

1916,  15.02%.  Surplus,  $701,684. 


Earnings, 


OHIO  OIL 

Capital  Stock,  $15,000,000. 
Dividends,  1917 — March  20.... 

1916— March  20 - 

June  20 . 

Sept.  20 . 

Dec.  20 . 

Dividends  1915 


COMPANY 
Par  value. 
5%  and  19% 
5%  and 
5%  and 
5%  and 
5%  and 


5% 

$200,000 

10% 

400,000 

10% 

400,000 

10% 

400,000 

10% 

400,000 

10% 

400,000 

Bk  Val.,  $117.54. 

$25. 

extra 

$3,600,000 

extra 

3,600,000 

extra 

3,600,000 

extra 

3,000,000 

extra 

3,000,000 

19% 

19% 

19% 

15% 

Dividends  1914 


February  2, 

133  1-3%  in  Ill- 

March 

20.  . 

8% 

$1,200,000 

lnols 

Pipe  Line  Co.  stock. 

June 

20.  . 

8% 

1,200,000 

March  20 .  . . 

10%  $1,500,000 

Sept. 

21.  . 

5% 

750,000 

June 

21... 

8%  1,200,000 

Dec. 

19.  . 

8% 

1,200,000 

Sept. 

20. .  . 

8%  1,200,000 

Dec. 

20... 

24%  3,600,000 

29% 

$4,850,000 

50%  $7,500,000 

Dividend  Record 


1 


Dividends  1912 


Dividends  1913 


March 

20. 

5% 

$750,000 

March  20 .  . 

.  9%  ” 

$1,350,000 

June 

20. 

5% 

750,000 

June  20 .  . 

8% 

1,200,000 

Sept. 

20. 

5% 

750,000 

Sept.  20 .  . 

8% 

1,200,000 

Dec. 

20. 

5% 

750,000 

Dec.  20 .  . 

.  32% 

4,800,000 

20% 

$3,000,000 

57% 

$8,550,000 

Earnings, 

1916,  98.9%.  Surplus, 

$66,846,921. 

Bk.  Val.,  $136.41. 

PRAIRIE  OIL  &  GAS  COMPANY 

Capital  Stock,  $18,000,000.  Par  value,  $100. 
Bonds,  $4,000,000 — 50-year  debenture  6s,  due  1955 


Dividends,  1917 — Jan.  31 .  3%  and  2%  extra 

April  30 .  3%  and  2%  extra 

1916 — January  15 .  3% 

April  29 .  5% 

July  31 .  5% 

October  31 .  5% 


to  1960. 

$900,000 

900,000 

540,000 

900,000 

900,000 

900,000 


18%  $3,240,000 

1915 — April  21,  150%  in  Prairie  Pipe  Line  Co.  Stock 

Dividends  1912  Dividends  1913 


March 

30. . . 

7% 

$1,260,000  Feb’y  28... 

6% 

$1,080,000 

,  June 

29... 

6% 

1,080,000 

— 

Sept. 

23.  . . 

6% 

1,080,000 

6% 

$1,080,000 

Nov. 

30.  . . 

6% 

1,080,000 

25%  $4,500,000 

Earnings,  1916,  88.04%.  Surplus,  $47,197,151.  Bk.  Val.,  $362. 


PRAIRIE  PIPE  LINE  COMPANY 

Capital  Stock,  $27,000,000.  Par  value  $100. 

$2,700,000 
2,700,000 
1,350,000 
2,700,000 
2.700,0041 
2,700,000 


$9,450,000 

Earnings,  1916,  45.5%.  Surplus,  $13,281,544.  Bk.  Val.,  $149.18. 


SOLAR  REFINING  COMPANY 

Capital  Stock,  $2,000,000.  Par  value,  $100. 
Capital  Stock  to  June  30,  1913,  $500,000. 


Dividends  1916 — June  20  .  5%  $100,000 

December  20 .  5%  100,000 


Dividends,  1917 — Jan.  31 . 5%  and  5%  extra 

April  30 .  5%  and  5%  extra 

1916 — January  15. . (Initial)  5% 

April  29 .  10% 

July  31 .  10% 

October  31 .  10% 


Dividends,  1915  . 

1914  . 

Dividends  1912 
Dec.  20...  20%  $100,000 

20%  $100,000 

Earnings,  1916,  55.23%.  Surplus, 


10%  $200,000 

.  10%  $200,000 

.  . .  10%  200,000 

Dividends  1913 

June  20...  20%  $109,000 

Dec.  20...  35%  700,000 


55%  $800,000 

$2,251;799.  Bk.  Val.,  $212.59. 


I 


Dividend  Record 


n 


SOUTHERN  PIPE  LINE  COMPANY 

Capital  Stock,  $1  0,000,000.  Par  value,  $100. 


Dividends,  1917— March  1 .  6%  $000,000 

June  1  .  6%  600,000 

1916  24%  2,400,000 


Dividends  1915  Dividends  1914 


March  1 .  .  . 

6% 

$600,000 

March 

2. 

8% 

$800,000 

June 

1.  .  . 

6% 

600,000 

June 

1. 

8% 

800,000 

Sept. 

1 .  .  . 

6% 

600,000 

Sept. 

1. 

8% 

800,000 

Dec. 

1 .  . . 

6% 

600,000 

Dec. 

1 . 

6% 

600,000 

24% 

$2,400,000 

30% 

$3,000,000 

Dividends  1912 

Dividends  1913 

March  1 .  .  . 

6% 

$600,000 

March 

1. 

8% 

$800,000 

June 

1.  .  . 

6% 

600,000 

June 

2 

8% 

800,000 

Aug. 

31.  .  . 

8% 

800,000 

Aug. 

30. 

8% 

800,000 

Dec. 

2... 

8% 

800,000 

Dec. 

1. 

8% 

800,000 

28% 

$2,800,000 

32% 

$3,200,000 

Earnings,  191G,  23.5 

4%.  Surplus 

$2,591, 0S9 

.  Bk.  Val 

.,  $125.91. 

SOUTH  PENN  OIL  COMPANY^ 

Capital 

Stock, 

$20,000,000. 

Par 

Value,  $100. 

Capital 

Stock 

to  Feb.  14. 

1917,  $12,500,000. 

• 

Capital 

Stock 

to  July  31, 

1913, 

$2,5 

00,000. 

Dividends  191 

7— March  15 . 

Stock 

March  31 . 

5% 

1,000,000 

1916— March  31 . 

5% 

$625,000 

June  30  . 

8% 

1,000,000 

September  30.. 

8% 

1 ,000,000 

December  30.. 

11  % 

1,375,000 

32% 

$4,000,000 

Dividends  1915 

Dividends  1914 

March  31.  .  . 

3% 

$375,000 

March  31 . 

5% 

$625,000 

June 

30. . . 

3% 

375,000 

June 

30. 

..  5% 

625,000 

Sept. 

20.  .  . 

3% 

375,000 

Dec. 

20.  .  . 

5% 

625,000 

10% 

$1,250,000 

14% 

$1,750,000 

Dividends  1912 

Dividends  1913 

June 

15.  . . . 

10% 

$250,000 

March 

31 . 

..  10% 

$250,000 

Sept. 

14. . . . 

10% 

250,000 

June 

30. 

..  10% 

250,000 

Dec. 

14.  . . . 

10% 

250,000 

Sept. 

30. 

3% 

375,000 

Dec.- 

31. 

5% 

625,000 

30% 

$750,000 

28% 

$1,500,000 

Earnings,  1916,  37.9%.  Surplus, 

$12, 3S9, 4  07. 

Bk.  Val 

.,  $198.31. 

SOUTHWEST  PENNSYLVANIA  PIPE  LINES 


Capital  Stock,  $3,500,000.  Par  value,  $100. 


Dividends,  1917— April  2 . 

1916  . 

1915  . 

1914  . 

1913  . 

1912  . 

Earnings,  1916,  13.04%.  Surpl.,  $1,049,350. 


3% 

$105,000 

12% 

420,000 

12% 

420,000 

16% 

560,000 

20% 

700,000 

20% 

700.000 

Bk.  Val., 

$129.97. 

Dividend  Record 


STANDARD  OIL  COMPANY— CALIFORNIA 


Capital  Stock,  $99,373,311.  Par  Value _ 

Capital  Stock  to  February  15,  1917 

Capital  Stock  to  April  15,  1916 . 

Capital  Stock  to  February  2,  1914... 
Capital  Stock  on  December  1,  1913. 
Capital  Stock  to  August  31,  1912 

Dividends,  1917 — March  15 . 

April  16 . . 

June  15  . . 

1916 — March  15 . . 

April  15 . 

June  15 . 

September  15 . 

December  15 . . 


Dividends  1915 
March  15...  2%%  $1,242,166 

June  15...  2yz%  1,242,166 

Sept.  15...  2V2%  1,242,166 

Dec.  15...  2^4%  1,242,166 


10%  $4,968,665 

Dividends  1912 

Dec.  18 . 2^%  $1,123,350 


$190 

$74,523,983 
49,686,660 

45.183.994 

44.933.994 
25,000,000 

2  V2%  $1,863,249 

33  1-3%  Stock 

2y2%  1,863,249 

2%%  $1,242,166 

50%  Stock  Dist. 
2y,%  1,863,249 

2y»%  1,863,249 

2  y2%  1,863,249 


2*4%  and  7 y.%  $6,831,913 

Dividends  1914 

March  16...  2%%  $1,129,599 

June  15...  2%%  1,242,166 

Sept.  15...  2%%  1,242,166 

Dec.  15...  2^%  1,242,166 


10%  $4,856,098 

Dividends  1913 

March  15...  2y»%  $1,123,350 

June  14...  2y.%  1,123,350 

Sept.  15...  2y2%  1,123,350 

Dec.  15...  2y2%  1,123,350 


10%  $4,493,400 

Earnings,  1916,  23.6%.  Surplus,  $30,782,324.  Bk.  Yak,  $142.77. 


STANDARD  OIL  COMPANY— INDIANA 

Capital  Stock,  $30,000,000.  Par  value,  $100. 

Capital  Stock  to  May  15,  1912,  $1,000,000. 

Dividends,  1917 — Feb.  28 .  3%  and  3%  extra,  $1,800,000 

May  31 .  3%  and  3%  extra  1,800,000 

1916  .  12%  3,600,000 

Dividends  1915  Dividends  1914 


Feb. 

27. .  . 

3% 

$900,000 

Feb. 

28.  . . 

7% 

$2,100,000 

May 

29.  .  . 

3% 

900,000 

May 

29.  .  . 

6% 

1,800,000 

Aug. 

31.  .  . 

3% 

900,000 

Aug. 

31.  .  . 

6% 

1,800,000 

Nov. 

30.  .  . 

3% 

900,000 

Nov. 

30.  .  . 

6% 

1,800,000 

12% 

$3,600,000 

25% 

$7,500,000 

Dividends 

1912 

\ 

Dividends 

1913 

Aug. 

31.  .  . 

3% 

$900,000 

Feb.. 

28.  .  . 

7% 

$2,100,000 

Nov. 

30.  .  . 

10% 

3,000,000 

May 

31.  .  . 

6% 

1,800,000 

• 

Aug. 

31. .  . 

7% 

2,100,000 

13% 

$3,900,000 

Nov. 

29.  .  . 

13% 

3,600,000 

32%  $9,600,000 

Earnings,  1916,  100%.  Surplus,  $53,236,657.  Bk.  Val.,  $277.43. 


STANDARD  OIL  COMPANY— KANSAS 

Capital  Stock,  $2,000,000.  Par  value,  $100. 

Capital  Stock  to  June  30,  1913.  $1,000,000. 

Dividends,  1917— Feb.  20 .  3%  and  2%  extra  $100,000 

1916  .  12%  240,000 


Dividend  Record 


10 


Dividends  1915  Dividends  1914 


Feb. 

27...  3% 

$60,000 

Feb. 

28.  . 

.  10% 

$200,000 

June 

15...  3% 

60,000 

June 

15  .  . 

3% 

60,000 

Sept. 

16...  3% 

60,000 

Dec.. 

16...  3% 

60,000 

13% 

$260,000 

12% 

$240,000 

Dividends  1912 

Dividends  1913 

Dec. 

14...  5% 

$50,000 

Feb. 

28.  . 

7% 

$70,000 

June 

30.  . 

.  10% 

100,900 

Sept. 

15.  . 

.  10% 

200,000 

Nov. 

29.  . 

.  13% 

260,000 

\ 

40% 

$630,000 

Earnings,  1916,  63 

.5%.  Surplus, 

$2,418,683. 

Bk.  Val., 

$220.93. 

STANDARD  OIL  COMPANY— KENTUCKY 

Capital  Stock,  $6,000,000.  Par  Value,  $100. 

Captal  Stock  to  April  16,  1917 . '.  $3,000,000 

Capital  Stock  to  January  31,  1914....  1,000,000 

Dividends,  1917— Jan.  2 .  4%  and  1%  extra  $150,04)0 

April  2 . -4%  and  1%  extra  150,000 

May  1 . .  100%  Cash  for  Stk. 

1916  .  20%  $600,000 

Dividends  1915  Dividends  1914 


Jan. 

2.  .  . 

4% 

$120,000 

April 

1.  .  . 

4% 

120,000 

July 

1.  .  . 

4% 

120,000 

Oct. 

1.  .  . 

4% 

120,000 

16%  $480,000 


Dividends  1913 — July  1 
October 

Earnings,  1916,  68.95%. 


Feb. 

14.  .Stock  200% 

Jan. 

2...  5% 

$50,090 

April 

1.  .. 

5% 

150,900 

July 

1. . . 

5% 

159,090 

Oct. 

1. .  . 

4% 

120,900 

5%  and  14%  $470,000 

.  5%  $50,000 

1  .  5%  50,000 

Surplus,  $4,049,325.  Bk.  Val.,  $234.66. 


STANDARD  OIL  COMPANY — NEBRASKA 

Capital  Stock,  $1,000,000.  Par  value,  $100. 

Capital  Stock  to  June  20,  1913,  $800,000. 

Capital  Stock  to  April  15,  1912,  $600,000. 

Dividends,  1916  20%  $200,000 

1915  .  20%  200,000 

1914  .  20%  200,000 

Dividends  1912  Dividends  1913 

June  20...  10%  $80,000  June  20...  15%  $120,000 

Dec.  20...  10%  80,000  Dec.  20...  15%  150,000 


20%  $160,000  30%  $270,000 

Earnings,  1915,  66.19%.  Surplus,  $858,707.  Bk.  Value,  $185.87. 


STANDARD  OIL  COMPANY— NEW  JERSEY 

Capital  Stock,  $98,338,382.  Par  value,  $100. 


Dividends,  1917 — March  16 .  5%  $4,016,919 

1916  . 20%  19,667,676 

1915  .  20%  19,667.676 

1914  .  20%  19,667,676 


dividend  Record 


11 


Dividends  1912 


March 

16. . . 

5% 

$4,916,919 

June 

15. . . 

5% 

4,916,919 

Sept. 

15. . . 

5% 

4,916,919 

Dec. 

15. .  . 

5% 

4,916,919 

20% 

$19,667,676 

Dividends  1913 


Feb. 

15.  . . 

40% 

$39,335,352 

March 

17.  .  . 

5% 

4,916,919 

June 

16. . . 

5% 

4,916,919 

Sept. 

15. . . 

5% 

4,916,919 

Dec. 

15.  .  . 

5% 

4,916,919 

60%  $59,003,028 

Ear  nings,  1915,  52.45%.  Surplus,  $183,565,395.  Bk.  Val.,  $286.66. 


STANDARD  OIL  COMPANY— NEW  YORK 

Capital  Stock,  $75,000,000.  Par  value,  $100. 

Capital  Stock  to  June  30,  1913,  $15,000,000. 

Dividends,  1917 — March  15 .  2%  $1,500,000 

June  15  .  3%  2,250,000 

1916  .  8%  6,000,000 

.  1915  .  8%  6,000,000 

1914  .  8%  6,000,000 

Dividends  1912  Dividends  1913 

June  15 .  6%  $900,000  June  16 .  6%  $900,000 

Earnings,  1916,  48.05%.  Surplus,  $68,635,573.  Bk.  Val.,  $191. 


STANDARD  OIL  COMPANY— OHIO 

Capital  Stock,  $7,000,000.  Par,  $100. 

Capital  Stock  to  July  31,  1916,  $3,500,000.  Par,  $100. 

Dividends,  1917 — April  2 .  3%  and  1%  extra  $280,000 

1916— April  1.. .  6%  210,000 

July  1 .  6%  310,000 

July  31 .  100%  Stock  Dist. 

Oct.  2..^....  3%  and  %%  extra  262,500 

Jan.  1 .  3%  and  1%  extra  280,000 


Earnings, 


12%  and  7%% 


1915  .  24% 

1914  .  24% 

1913  .  20% 

1912 — Deceirfber  15 .  5% 


1916,  53.6%.  Surplus,  $6,039,390.  Bk.  Val., 


$962,500 

840,000 

840,000 

700,000 

175,000 

$185.56. 


SWAN  AND  I  INCH  COMPANY 
Capital  Stock,  $1,000,000  Par,  $100. 

Capital  Stock  to  August  1,  1916,  $500,000.  Par,  $100. 
Capital  Stock  to  August  21,  1912,  $100,000. 

No  Dividends  Dividends  1913 

in  1912  March  31..  5%  $25,000 

Earnings,  1916,  6.5%.  Surplus,  $530,114.  Bk.  Value,  $154.65. 


UNION  TANK  LINE  COMPANY 
Capital  Stock,  $12,000,000.  Par  value,  $100. 

Dividends,  1917— March  24 .  2 %%  $306,000 

1916  .  5%  600,000 

Dividends  1915  Dividends  1914 

March  25...  2V£%  $300,000  Mar.  25.(S.A.)  2i£%  $300,000 

Sev  t.  25...  2ys%  300,000  Sept.  25 . 2%%  300.000 


5  %  $600,000  5%  $600,000 

Earnings,  1916,  17.34%.  Surplus,  $2,354,262.  Bk.  Val.,  $119.61. 


VACUUM  OIL  COMPANY 

Capital  Stock,  $15,000,000.  Par  value.  $100. 

Capital  Stock  to  June  1.  1912  *2. 500.000. 

Dividends,  1917— May  15 .  3%  and  2%  extra  $750,000 

October  31 .  3%  4159,000 


8% 


$  1,200,000 


12 


Foreword 


» 


Dividends 

1915 

Dividends 

1914 

May 

15 .  .  • 

6% 

$750,000 

May 

15.  .  . 

3% 

$450,000 

Oct. 

*0.  . » ' 

3% 

450,000 

Oct. 

31.  .  . 

3% 

450,000 

8% 

$1 ,200,000 

6% 

$900,000 

Dividends 

1912 

Dividends 

1913 

Aug. 

16.  .  . 

3% 

$450,000 

May 

15.  .  . 

3% 

$450,000 

Oct. 

16.  .  . 

3% 

450,000 

Oct. 

31.  .  . 

3% 

450,000 

6% 

$900,000 

6% 

$900,000 

Earning's  1916,  61.48%.  Surplus,  $32,010,543.  Bk.  Val.,  $313. 


WASHINGTON  OIF  COMPANY 

Capital  Stock,  $100,000.  Par  value,  $10. 


Dividends, 

1910  . 

.  40%  $40,000 

1915 

1914 . 

1913  . 

.  30%  *  $30,000 

.  30%  30,000 

1912  . 

Earnings, 

1916,  32.9%. 

Surplus,  $45,862.  Bk.  Val.,  $14. 5S. 

Standard  Oil  Stocks 


FOREWORD 

In  this  fifteenth  edition  of  Standard  Oil  Stocks  is  reviewed 
the  remarkable  progress  of  this  group  of  disintegrated  com¬ 
panies  since  the  dissolution  decreed  by  the  Supreme  Court  of 
the  United  States,  which  became  effective  with  the  beginning 
of  the  calendar  year  1912. 

Under  individual  management  and  in  the  face  of  the 
sharpest  competition,  practically  every  one  of  the  original 
thirty-four  companies,  now  grown  to  thirty-six,  has  achieved 
success  far  greater  than  in  any  previous  period  in  its  history. 
And  while  maintaining  the  utmost  liberality  in  the  way  of 
dividend  distributions,  each  company  has  reserved  ample 
funds  for  plant  expansion  to  insure  a  growth  in  earning- 
power. 

Glancing  back  over  the  five-year  period,  the  amounts  dis¬ 
tributed  in  cash  and  stock  dividends  and  the  surplus  earnings 
reinvested  in  plant  expansion,  bulk  so  large  as  to  force  the 
admission  that  in  no  other  industry  is  it  possible  to  multiply 
profits  so  rapidly  under  normal  conditions.  Further  probf  of 
this  conclusion  is  found  in  the  successful  records  of  oil  com¬ 
panies  outside  of  this  group,  many  of  which  have  attained 
within  the  last  five  years,  almost  a  mushroom  growth,  sup¬ 
ported,  however,  by  substantial  assets  and  an  assured  earning 
power. 

The  whole  situation  attests  that  expansion  within  the 
industry  is  proceeding  at  such  a  pace,  that  cut-throat  com¬ 
petition  practically  is  eliminated. 

The  prime  reason  for  this  unexampled  prosperity  has  been 
the  phenomenal  development  of  the  automobile  industry.  On 
January  1,  1912,  shortly  after  the  dissolution  went  into  effect, 
there  were  677,000  registered  motor  driven  vehicles  in  this 
country  and  our  domestic  consumption  of  gasolene  was  around 
500,000,000  gallons.  At  the  close  of  1916,  there  were  more 
than  3,000,000  registered  motor  vehicles  in  this  country  and 
our  domestic  consumption  of  gasolene  had  increased  to 
around  2,500,000,000  gallons  annually  and  is  mounting-  con- 


Foreword 


13 


tinually  as  our  production  of  motor  driven  vehicles,  not  in¬ 
cluding  motor  boats,  aeroplanes  or  farm  tractors,  has  reached 
a  production  in  excess  of  50,000  cars  monthly. 

This  feature  of  the  automobile  industry  is  elaborated  on 
by  the  Federal  Trade  Commission  in  its  recent  report  on 
“The  Cost  of  Gasolene,”  covering  a. lengthy  investigation  held 
during  the  early  part  of  1916.  The  Commission  finds  that  the 
sharp  rise  in  the  price  of  gasolene  which  began  in  1915,  was 
due  to  the  tremendous  growth  in  gasolene  consumption  due 
to  an  ever-increasing  use  of  motor  vehicles.  A  decline  in 
the  production  of  crude  oils  yielding  a  high  content  of  gaso¬ 
lene  and  the  rising  cost  of  materials  and  labor  were  con¬ 
tributing  causes  to  the  rising  price  of  motor  fuel. 

The  conclusion  of  the  Commission  with  respect  to  the 
high  cost  of  gasolene  is  as  follows: 

“The  demand  for  gasolene  as  measured  by  consumption 
has  increased  and  was  about  38  per  cent,  higher  in  1915  than 
in  1914.  The  supply  did  not  increase  in  proportion,  the 
quantity  of  gasolene  and  naphtha  manufactured  in  1915  be¬ 
ing  31  per  cent,  greater  than  in  1914.  The  difference  between 
production  and  sales  was  covered  by  decreases  in  stocks  of 
gasolene.  As  a  result,  the  general  level  of  prices  in  1915  was 
necessarily  and  naturally  somewhat  higher  than  in  1914.” 

By  combining  several  of  the  tables  compiled  by  the  Com¬ 
mission,  the  reserve  supply  of  gasolene,  the  amount  produced 
and  the  estimated  gasolene  content  of  crude  oil  produced  is 
shown  comparatively  by  months  throughout  1915,  as  follows: 

Stocks  of  Estimated  Gasolene 


Gasolene  on 

Gasolene 

Content  of  Crude 

1915 

Hand 

Produced 

Oil  Produced 

(Gallons) 

(Gallons) 

(Gallons) 

January. . 

279,064,829 

102,163,809 

175,607,880 

February  . 

303,201,311 

91,414,804 

151,237,170 

March .... 

328,615,099 

106,185,395 

174,700,890 

April . 

346,393,405 

113,187,880 

191,776,410 

May . 

338,754,327 

122,327,363 

181,653,990 

June . 

328,983,082 

125,693,178 

185,659,740 

July . 

303,611,147 

129,861,381 

172,093,950 

August  .  . . 

278,586,109 

126,760,142 

164,377,500 

September 

237,661,631 

122,971,122 

148,076,460 

Octbber . .  . 

■205,720,348 

130,664,877 

145,263,510 

November. 

196,568,604 

127,551,860 

139,753,530 

December . 

184,577,456 

128,541,081 

145,601,190 

At  the  be 

ginning  of  1915, 

there  was  only  two  months’ 

supply  of  gasolene  on  hand.  For  seasonal  reasons,  this  supply 
increased  until  April,  when  there  was  a  gradual  drain  on 
stocks,  despite  increased  production  until  at  the  close  of  the 
year,  the  available  reserve  supply  was  94,487,373  gallons  less 
than  on  January  1. 

The  reason  for  this  tremendous  expansion  in  gasolene  de¬ 
mand  was  traced  by  the  Commission  to  the  remarkable  growth 
in  the  use  of  automobiles  and  internal  combustion  engines. 

This  is  shown  in  the  following  table  compiled  from  reports 
of  270  companies  manufacturing  gasolene  engines: 


14 


Foreword 


1913  1914 


Number 

Total 

Number 

Total 

Automobiles  and 

Sold 

Horsepower 

Sold 

Horsepower 

Motor  Trucks. . .  . 

318,773 

7,561,972 

446,508 

10,449,825 

Tractors  . 

2,532 

76,491 

2,965 

99,454 

Stationary  and 

• 

Portable  Engines 

113,996 

1,213,117 

136,134 

880,283 

Power  Boats . 

128,110 

2,427,563 

130,330 

2,457,769 

Total . 

563,381 

11,279,143 

715,937. 

13,887,331 

Per  Cent,  of 

1915 

Horsepower 

N  umber 

Total 

Increase 

Automobiles  and 

Sold 

Horsepower 

Over  1914 

Motor  Trucks! . .  . 

725,372 

17,263,337 

65 

Tractors  . 

7,145 

200,380 

101 

Stationary  and 

Portable  Engines 

215,623 

2,931,584 

o 

33 

Power  Boats . 

110,748 

2,129,557 

15 

Total . 

1,058,888 

22,524,858 

62 

How  direct  was  the  bearing  of  this  ever  increasing  distri¬ 
bution  of  gasolene  consuming  horsepower  upon  the  petroleum 
industry  is  revealed  by  the  Commission  in  this  table,  sum¬ 
marizing  the  sales  of  gasolene  and  naphthas  by  .refiners  re¬ 
porting  to  the  Commission: 


Standard 

Per  Cent. 

Other 

Per  Cent. 

Refiners 

of 

Refiners 

of 

Gallons 

Increase" 

Gallons 

Increase 

1913. . . 

824,978,000 

274,363,000 

1914. .  . 

919,058.000 

11.40 

412,172,000 

50.23 

1915. . . 

.  1,221,805,000 

32.94 

627,985,000 
All  Refiners 

52.36 

Per  Cent,  of 

1913  .  .  . 

• 

Gallons 

1,099,350,000 

1,331,230,000 

Increase 

1914. . . 

21.09 

1915.  .  . 

1,849,790,000 

38.95 

“These  figures,”  the  report  says,  “show  an  increase  in 
sales  by  refiners  to  jobbers  and  consumers  of  over  3$  per 
cent,  between  1914  and  1915.  Though  the  percentage  of  in¬ 
crease  in  sales  by  non-Standard  refiners  was  greater  than 
that  in  sales  by  Standard  refiners,  the  absolute  increase  was 
less,  the  quantities  being  215,S13,000  gallons  and  302,747,000 
gallons,  respectively.” 

It  is  interesting  to  check  back  this  growth  of  38  per  cent, 
in  sales  to  another  table  in  the  report  bearing  on  the  auto¬ 
mobile  industry.  TJhe  growth  in  the  number  of  licensed  motor 
vehicles  and  the  consequent  growth  in  gasolene  consumption 
based  on  the  Commission’s  conservative  estimate  of  450  gal¬ 
lons  annual  consumption  to  each  car,  shows  the  following: 

Licensed  Motor  Gallons 

Vehicles  Consumed 


1913  .  1,191,000  @  450  gallons  per  year  535,950,000 

1914  .  1,508,000  @  450  gallons  per  year  678,600,000 

1915  .  2,075,000  @  450  gaUons  per  year  933,750,000 


Here  again  the  figures  indicate  an  increase  in  gasolene 
consumption  by  automobiles  of  38  per  cent,  in  1915  over  1914 
and  of  74  per  cent,  in  1915  over  1913. 

This  situation  has  created  a  basic  revolution  within  the 
Industry.  Formerly  kerosene  was  the  staple  product,  but 


Foreword 


16 


with  the  advent  of  the  universal  use  of  the  automobile,  the 
demand  for  the  lighter  products  of  crude  oil  was  increased, 
refining  methods  were  revolutionized  to  force  a  larger  yield 
of  naphthas  and  the  better  prices  obtained  for  the  motor 
fuels,  greatly  increased  the  margin  of  profits. 

For  more  than  two  years  past,  the  greatest  problem  within 
the  industry  has  been  the  excess  of  consumptive  demand  over 
gasolene  supply.  This  in  turn  has  had  a  beneficial  effect 
upon  the  market  for  the  raw  material. 

Meanwhile  with  the  speeding  up  of  industrial  production, 
both  in  this  country  and  abroad,  which  followed  the  out¬ 
break  of  the  war,  the  demand  for  lubricants  and  fuel  oils 
broadened  the  markets  for  all  classes  of  petroleum  by¬ 
products. 

The  question  arises  in  some  quarters  whether  a  cessation 
of  hostilities  will  cause  a  reaction  in  the  oil  industry.  It  is 
hard  to  find  any  grounds  for  such  apprehension.  Certainly 
the  use  of  motor  driven  vehicles  will  not  subside.  That 
leaves  the  gasolene  situation  safe.  Manufacturing  activity 
instead  of  slackening  is  expected  to  be  maintained,  even 
though  the  manufacture  of  instruments  of  destruction  is 
replaced  by  an  output  destined  for  the  arts  of  peace.  That 
takes  care  of  the  lubricating  oil  markets  and  above  and 
beyond  all  other  considerations,  our  export  oil  trade,  which 
has  expanded  during  the  war  period  in  spite  of  shipping 
difficulties  and  the  scarcity  of  bottoms,  will  attain  unpre¬ 
cedented  proportions  until  the  depleted  petroleum  supplies 
of  Europe  are  brought  back  to  a  normal  basis.  Neither  con¬ 
tinued  warfare  nor  sudden  peace  will  affect  the  oil  industry 
unfavorably  or  cause  any  abnormal  re-adjustment  in  the 
present  level  of  prices. 

It  is  a  significant  fact  that  while  our  oil  exports  have 
shown  less  than  their  normal  growth  since  July,  1914,  the 
industry  in  this  country  has  attained  its  greatest  prosperity 
during  the  war  period.  In  every  respect,  1916  has  been  the 
most  profitable  year  since  the  industry  was  organized.  In  the 
amount  of  crude  oil  produced  and  refined,  in  the  prices  for 
the  raw  material  and  manufactured  product,  in  the  ratio  of 
profits  and  the  amount  of  dividends  distributed,  the  year 
established  new  high  records. 

Although  only  one  quarter  of  the  current  year  has  elapsed, 
a  new  set  of  high  records  in  all  these  lines  has  been  estab¬ 
lished  and  further  price  advances  and  larger  profits  are  con¬ 
fidently  anticipated. 

Reviewing  the  Standard  Oil  group  of  companies  since  the 
dissolution,  we  find  the  following  record  of  cash  dividends  by 
years  and  quarters: 


l-iv. 


1916 

1915 

1914 

1913 

1912 


First  Second  Third  Fourth 
Quarter  Quarter  Quarter  Quarter  Total 

$22,179,085*$30,406,454  $21,980,168  $24,062,168  $98,627,875 
15,241,966  14,368,636  15,891,966  16,898,636  62,401,204 

17,904,636  16,426,306  14,430,636  14,931,306  63,692,884 

f55,652,423  15,552,096  15,213,746  21,377,096  107,795,361 

10,220,396  11,983,746  13,190,396  16,392,096  51,786,634 


♦Includes  $250,000  disbursed  by  Colonial  Oil  Company  in 
liquidation,  and  $6,363,786  disbursed  by  National  Transit 
Company  from  accumulated  assets  to  reduce  its  capital 
50  per  cent. 

flncludes  $39,335,352  disbursed  by  Standard  Oil  Company 
of  New  Jersey  from  repayment  of  loans  to  former 
subsidiaries.  ' 


16 


Foreword 


Cash  dividends  disbursed  in  the  first  quarter  of  1917  were 
$23,097,668,  which  sets  a  new  high  record  for  cash  distributed 
out  of  current  earnings. 

Since  the  dissolution  twenty-two  of  the  companies  in  the 
original  group  have  effected  capital  changes,  eighteen  by 
increases  either  through  stock  dividends  or  subscription  rights 
at  par,  two  have  obtained  sanction  to  increase  their  capital 
but  have  not  taken  steps  to  do  so  and  two  companies  have 
reduced  their  capital  or  surplus  by  cash  distributions.  In 
the  tabular  record  of  these  changes,  which  follows,  it  will  be 
noticed  that  some  companies  have  increased  their  capital 
two  or  three  times,  Standard  Oil  Company  of  California  lead¬ 
ing  in  this  respect  with  four  changes,  through  which  its 
capital  has  been  increased  by  successive  steps  from  $25,000,000 
to  $100,000,000. 


COMP ANT 

1912 

Standard  Oil  of 
Standard  Oil  of 
Standard  Oil  of 
Swan  &  Finch. 


Subscription 

Stock  Rights  Capitalization 
Dividends  H’d’gs  Old  Capi-  New  Capi 
Declared  at  par  talization 

California  .  80%  $25,000,000 


Indiana. . 
Nebraska. 


2900% 

33%% 


400% 


Vacuum  Oil  Company. 


1,000,000 

600,000 

100,000 


talizatioH 

$45,000,000 

30,000,000 

800,000 

500,000 


500%  2,500,000  15,000,000 


1913 

Anglo-American  Oil  Co...  100%  .... 

•Continental  Oil  Company  900% 
Galena-Signal  Oil  Co.,  C’m  50%  .... 

Galena-Signal  Oil  Co.,  Pfd  . 

Solar  Refining  Company..  300%  .... 

South  Penn  OH  Company.  300%  100% 
Standard  Oil,  Kansas....  100%  .... 

Standard  Oil,  Nebraska...  25%  .... 

Standard  Oil,  New  York..  400%  .... 

§Waters-Pierce  Oil  Co....  2625%  .... 

1914 

TStandard  Oil,  Kentucky .  200% 

{Standard  Oil.  California .  10% 


$5,000,000 

300,000 

8,000,000 

2,000,000 

500,000 

2,500,000 

1,000,000 

800,000 

15,000,000 

400,000 

$1,000,000 

44,933,994 


$10,000,000 

3,000,000 

12.000,000 

2,000,000 

2,000,000 

12,500,000 

2,000,000 

1,000,000 

75,000,000 

10,500,000 

$3,000,000 

50.000,000 


1915 

flOhio  Oil  Company  .  133  1-3% 

••Prairie  Oil  &  Gas  Co .  150% 


$20,000,000 

27,000,000 


1916 

Standard  Oil  Co.,  Calif... 
{{National  Transit  Co.... 

Swan  &  Finch . 

Chesebrough  Mfg.  Co.... 
Standard  Oil  Co.,  Ohio... 
{{Colonial  Oil  Comanpy .  . 


50%  . . .  . 

.  100% 

200% 

100%  .... 


$50,000,000 

12,727,575 

500,000 

500,000 

3,500,000 


$75,000,000 

6,362,500 

1,000,000 

1,500,000 

7,000,000 


1917 

South  Penn  Oil  Company.  60% 
Standard  Oil  Co.,  Calif..  33  1-3% 

§§Ohio  Oil  Company .  300% 

iMiStandard  Oil,  Indiana . 

Standard  Oil,  Kentucky..  100% 


_ $12,500,000  $20,000,000 

_  75,000,000  100,000,000 

_  15,000,000  60,000,000 

-  30,000,000  .  . . . 

.  .  .  .  3,000,000  6,000,000 


•Continental  Oil  Company  (of  Colorado)  was  incorporated 
with  $3,000,000  capital  stock  to, acquire  the  Continental 
Oil  Company  (of  Iowa),  having  a  capital  stock  of  $300,- 
000,  the  exchange  being  made  on  the  basis  of  ten  shares 
for  one. 


\ 


Foreword 


17 


tStandard  Oil  Company  of  Kentucky  increased  is  authorized 
capital  stock  to  $3,000,000  by  declaring  a  cash  dividend 
of  200  per  cent,  and  awarded  rights  to  its  stockholders 
to  subscribe  at  par  for  two  shares  of  new  stock  for  each 
share  of  old  stock.  The  stockholders  thereupon  used 
their  cash  dividend  to  exercise  their  subscription  rights. 

^Stockholders  of  Standard  Oil,  California,  met  on  March  16, 
1914,  and  approved  the  proposition  to  increase  the 
authorized  capital  stock  from  $50,000,000  to  $100,000,000. 
The  company  will  take  no  action  on  this  capital  increase 
until  business  conditions  are  thoroughly  normal.  How¬ 
ever,  the  company  on  February  2,  1914,  awarded  the 
shareholders  the  privilege  of  purchasing  45,184  shares  of 
treasury  stock  at  par.  This  was  equivalent  to  subscrip¬ 
tion  rights  of  10  per  cent,  on  the  outstanding  stock  and 
raised  the  issued  capital  to  $49,686,655. 

§  Waters-Fierce  Oil  Company  was  absorbed  July  25,  1913, 
by  the  Pierce  Oil  Corporation.  The  terms  of  exchange 
being  $1,250  in  cash  and  $2,625  in  new  stock. 

flOhlo  Oil  Company  in  separating  its  pipe  lines  from  its 
producing  properties,  formed  the  Illinois  Pipe  Line  Com¬ 
pany,  capital  $20,000,000  and,  turned  over  its  transport¬ 
ation  properties  in  return  for  the  $20,000,000  capital 
stock,  which  was  then  distributed  pro  rata  among  Ohio 
Oil  Company  shareholders. 

* ‘Prairie  Oil  and  Gas  Company  in  separating  its  pipe  line 
properties  formed  a  $27,000,000  corporation,  the  Prairie 
Pipe  Line  Company,  the  stock  of  which  was  then  dis¬ 
tributed  pro  rata,  in  the  shape  of  a  150  per  cent,  stock 
dividend,  among  Prairie  Oil  and  Gas  Company  share¬ 
holders. 

ttNational  Transit  Company  reduced  its  capitalization  one- 
half  by  retiring  103  shares  and  distributing  a  50  per 
cent,  cash  dividend  ($12.50),  leaving  the  same  number 
of  shares  outstanding,  but  reducing  the  par  from  $25 
to  $12.50.  * 

$$Colonial  Oil  Company  distributed  100  per  cent  ($250,000) 
in  liquidation. 

§§Ohio  Oil  Company  authorized  an  increase  of  capital  to 
$60,000,000  and  the  directors  declared  a  300  per  cent,  stock 
dividend  by  raising  the  par  value  of  600,000  shares  from 
$25  to  $100.  The  Secretary  of  State  of  Ohio  refused  to 
sanction  this  method  and  the  matter  is  in  abeyance. 

IMlStandard  Oil  Company  of  Indiana  stockholders  have  auth¬ 
orized  an  increasing  capital  to  $100,000,000,  but  no  steps 
have  been  taken  to  distribute  the  increase. 

We  find,  therefore,  that  since  the  dissolution  to  April  1, 
1917,  there  have  been  distributed  by  these  companies  $407,- 
401,626  in  cash;  $207,200,000  in  stock  at  par  value  and  sub¬ 
scription  rights  at  par  to  the  extent  of  $40,900,000.  If  the 
market  value  of  the  stock  distributed  wrere  taken  into  con¬ 
sideration,  the  value  of  the  cash  and  stock  dividends  alone 
would  aggregate  upwards  of  a  billion  dollars. 

Another  way  of  gauging  the  intensive  development  of  the 
oil  industry  in  the  last  five  years  and  its  investment  possi¬ 
bilities,  is  through  a  comparison  of  ~the  capitalization  and 
market  valuation  of  this  group  of  companies  at  the  time  of 
the  dissolution  and  after  five  years  of  independent  operation. 
Taking  as  a  basis  of  comparison,  the  market  of  April  13,  1912, 
when  an  active  market  in  these  securities  had  been  estab¬ 
lished  and  comparing  it  with  the  market  on  April  13,  1917, 
furnishes  the  following  illuminating  table: 


18 


Foreword 


Anglo-Ameri.  Oil,  Ltd.  .! 

Atlantic  Refining  Co... 

Borne-Scrymser  Co. .... 

Buckeye  Pipe  Line  Co. . 

Chesebrough  Mfg.  Co. .  . 

Colonial  Oil  Company. . 

Continental  Oil  Co . 

Crescent  Pipe  Line  Co. . 

Cumberland  Pipe  Line.. 

Eureka  Pipe  Line  Co. .  . 

Galena  Signal  Oil,  Pfd. . 

Galena  Signal  Oil,  Com. 

Indiana  Pipe  Line  Co. .  . 

National  Transit  Co.... 

New  York  Transit  Co. .  . 

Northern  Pipe  Line  Co. . 

Ohio  Oil  Company . 

Prairie  Oil  &  Gas  Co. . .  . 

Solar  Refining  Company 
Southern  Pipe  Line  Co. . 

South  Penn  Oil  Co. .... 

So.  W.  Penn  Pipe  Lines 
Standard  Oil — Calif  .  .  . 

Standard  Oil — Indiana. 

Standard  Oil — Kansas. 

Standard  Oil— Kentucky 
Standard  Oil — Nebraska 
Standard  Oil — N.  York. 

Standard  Oil — Ohio. .  .  . 

Standard  Oil — N.  Jersey 

Swan  &  Finch  Co . 

Union  Tank  Oil  Co...-. 

Vacuum  Oil* Company. 

Washington  Oil  Co.... 

Waters-Pierce  Oil  Co.. 

(Pierce  Oil  Corp.) 

Total . 8503, 108,382  3,154,482,637  276,916,754  906,233,084 


April  15,  1917 

'  - . . 

April  15,  1912 

Capitaliz- 

Market 

Capitaliz- 

Market 

at  ion 

Value 

ation 

Value 

810,000,000 

833,500,000 

85,000,000 

815,000,000 

5,000,000 

48,000,000 

5,000,000 

23,750,000 

200,000 

900,000 

200,000 

470,000 

10,000,000 

21,000,000 

10,000,000 

25,000,000 

1,500,000 

6,375,000 

500,000 

3,437,500 

*250,000 

150,000 

250,000 

393,750 

3,000,000 

16,800,000 

200,000 

1,775,000 

3,000,000 

2,400,000 

3,000,000 

3,750,000 

1,000,000 

1,650,000 

1,000,000 

975,000 

5,000.000 

10,500,000 

5,000,000 

14,875,000 

2,000,000 

2,800,000 

2,000,000 

2,850,000 

12,000,000 

18,300,000 

8,000,000 

18,400,000 

5,000,000 

10,200,000 

5,000,000 

11,000,000 

6,362,500 

9,162,000 

12,727,572 

17,564,049 

5,000,000 

10,000,000 

5,000,000 

14,875,000 

4,000,000 

4,080,000 

4,000,000 

4,500,000 

15,000,000 

211,500,000 

15,000,000 

58,800,000 

18,000,000 

100,800,000 

18,000,000 

47,700,000 

2,000,000 

7,200,000 

500,000 

3,375,000 

10,000,000 

20,550,000 

10,000,000 

18,500,000 

20,000,000 

61,000,000 

2,500,000 

16,250,000 

3,500,000 

3,937,500 

3,500,000 

5,512,500 

100,000,000 

285,500,000 

25,000,000 

45,000,000 

30,000,000 

243,000,000 

1,000,000 

63,500,000 

2,000,000 

10,350,000 

1,000,000 

2,750,000 

6,000,000 

28,800,000 

1,000,000 

4,375,000 

1,000,000 

5,750,000 

600,000 

1,350,000 

75,000,000 

221,625,000 

15,000,000 

63,000,000 

7,000,000 

32,725,000 

3,500,000 

8,312,500 

98,338,382 

644,116,402 

98,338,382 

388,436,608 

1,000,000 

1,050,000 

100,000 

800,000 

12,000,000 

11,160,000 

12,000,000 

6.180,000 

15,000,000 

57,750,000 

2,500.800 

3,676,176 

100,000 

350,000 

100,000 

300,000 

13,857,500 

11,501,725 

400,000 

9,800,000 

Bearing  upon  the  position  within  the  oil  industry  of  these 
companies  and  recalling  that  the  gasolene  business  is  now 
the  basic  factor  of  the  oil  trade,  the  following  excerpt  from 
the  recent  gasolene  report  of  the  Federal  Trade  Commission 
is  illuminating: 

“On  the  basis  of  tank-wagon  sales  in  towns  having  a 
population  of  2,500  or  over,  estimates  have  been  made  of  the 
relative  volume  of  the  sales  of  gasolene  by  the  several  Stand¬ 
ard  companies  in  their  respective  territories.  As  these  esti¬ 
mates  are  based  upon  only  a  part  of  the  total  business,  and 
as  the  Commission  is  not  in  possession  of  complete  statistics 
of  the  so-called  independents,  the  estimates  must  be  taken 
with  allowance  for  a  small  margin  of  error.  The  figures, 
however,  are  believed  to  be  approximately  the  correct  per¬ 
centages,  and  indicate  fairly  accurately  the  comparative  posi¬ 
tion  of  the  several  Standard  companies  in  their  respective 
territories.  They  show  that  the  Standard  companies  control 
approximately  65  per  cent,  of  the  gasolene  business  through¬ 
out  the  United  States.  Although  their  percentage  of  control 
has  declined  since  1906,  when  testimony  taken  in  the  Standard 
Oil  case  showed  them  to  possess  approximately  85  per  cent, 
of  the  business,  nevertheless  they  still  occupy  a  dominant 


i 


1 


Foreword 


19 


position  in  the  trade,  and  the  aggregate  volume  of  their  busi¬ 
ness  has  increased. 

“Moreovoer,  a  material  part  of  the  apparent  decline  in 
percentage  of  control  by  Standard  companies  is  due  to  the 
fact  that  certain  large  companies,  in  which  various  Standard 
stockholders  have  considerable  interests,  are  classed  as  ‘inde¬ 
pendents’  in  this  report.  Standard  stockholders  owned  about 
30  per  cent,  of  the  stock  of  the  Tidewater  Oil  Company  and 
about  25  per  cent,  of  the  stock  of  the  Texas  Company,  which 
are  here  classed  as  ’independent.’ 

“Another  company  included  among  the  ‘independents'  in 
1915  is  the  Midwest  Refining  Company,  though  it  is  known 
to  have  operated  in  such  a  way  as  to  have  made  it  an  ally 
rather  than  a  competitor  and  is  now  reported  to  have  come 
under  the  direct  control  of  the  Imperial  Oil  Company  (Ltd.) 
of  Canada,  which  is  a  Standard  concern.  These  facts  indicate 
that  the  statement  that  Standard  companies  controlled  ap¬ 
proximately  65  per  cent,  of  the  gasolene  business  of  the  United 
States  is  conservative.  It  does  not  mean  that  all  the  remain¬ 
ing  35  per  cent,  of  the  business  was  strictly  competitive. 

“Estimated  percentages  of  the  total  quantity  of  gasolene 
sold  in  the  several  Standard  marketing  territories  by  the 
several  Standard  companies  operating  therein  during  1915: 

Per  Cent,  of  Tofal 


Territory  of —  Sales  of  Gasolene 

Standard  of  New  York...; .  70 

Atlantic  Refining  Company .  70 

Standard  of  Ohio . . .  70 

Continental  Oil  Company .  63 

Standard  of  New  Jersey . .  60 

Standard  of  Nebraska .  60 

Standard  of  Indiana . * . .  60 

Standard  of  Kentucky .  50 

Standard  of  California.. . .  48 

Standard  of  Louisiana .  33 

Magnolia  Petroleum  Company .  27 


“At  a  hearing  by  the  Commission  on  June  12  and  13,  1915, 
representatives  of  the  Standard  Oil  Company  of  New  York, 
stated  that  70  per  cent,  was  approximately  correct  for  their 
territory  to  the  best  of  their  knowledge.  Representatives  of 
the  Standard  of  Ohio  also  stated  that  according  to  oil  inspec¬ 
tion  records  in  Ohio,  their  company  sold  about  65  per  cent, 
of  the  gasolene  in  that  State,  which  figure  is  only  a  little 
less  than  the  Commission’s  estimate.  The*  Indiana  percentage, 
it  should  be  observed,  applies  to  the  whole  territory,  but  in 
some  States — as  in  Kansas  and  Iowa — the  percentage  was 
somewhat  lower.  Indeed,  the  Indiana  company’s  volume  of 
sales  for  Kansas,  computed  on  the  bhsis  of  tank-wagon  sales 
at  towns  of  2,500  or  over,  was  only  46  per  cent,  in  1915.” 

Petroleum  Production  and  Prices 

The  amount  of  crude  petroleum  marketed  in  1916  estab¬ 
lished  a  new  high  record  according  to  the  preliminary  esti¬ 
mate  of  the  United  States  Geological  Survey.  The  Govern¬ 
ment  figures  covering  petroleum  consumption  for  the  past 
five  years  are  as  follows: 


1916 .  292,300,000  , 

1915 . 281,104,104 

1914 .  265,762,535 

1913 .  248,381,744 

1912 .  237,298,340 


20 


Foreword 


The  Government  figures  do  not  include  oil  produced  and 
used  on  leases  or  oil  placed  in  field  storage,  but  only  oil  that 
is  sold  for  consumption.  The  amount  of  oil  in  storage  at 
the  beginning  of  1916  was  estimated  at  192,194,726  barrels, 
while  on  December  31,  1916,  this  amount  is  estimated  to  have 
been  reduced  to  157,857,567  barrels.  The  greatest  loss  in 
stored  oil  was  in  the  California  field,  in  which  more  than  a 
million  barrels  have  been  withdrawn  from  storage  monthly 
from  January,  1916,  to  the  present  time.  % 

The  rapid  growth  in  refinery  consumption  coincident  with 
a  falling  off  in  production  of  the  lighter  grade  oils  on  the 
Mid-Contient  fields,  caused  a  sharp  advance  in  crude  oil 
prices  early  in  1916.  This  resulted  in  an  unusually  active 
drilling  campaign  throughout  Oklahoma  and  Kansas  and  by 
June,  1916,  the  number  of  wells  under  way  had  reached  high 
record  figures.  This  fact  in  conjunction  with  the  discovery 
of  prolific  new  pools  at  Augusta  and  El  Dorado  in  Butler 
County,  Kansas,  which  reached  a  combined  daily  output 
around  40,000  barrels,  caused  a  break  in  the  crude  oil  markets 
during  July  and  August.  It  soon  became  apparent,  however, 
that  active  drilling  was  not  keeping  up  the  output  of  the 
Oklahoma-Kansas  fields,  which  are  the  country’s  principal 
source  of  high  grade  crude.  In  November,  the  market  took 
Jin  upturn  and  had  reached  $1.40  by  the  close  of  the  year, 
against  a  previous  high  of  $1.55  in  March  and  a  low  of 
90  cents  in  August. 

The  market  continued  to  advance  sharply  during  Jan¬ 
uary,  1917,  until  $1.70  was  reached,  which  is  the  high  record 
for  all  time  in  the  Mid-Continent.  The  price  represents  only 
the  general  market  and  private  refineries  are  paying  pre¬ 
miums  ranging  from  25  cents  to  50  cents  above  the  market 
for  fresh  Cushing  crude  or  oil  above  38  degrees  ’Baumer 

The  movements  of  the  Mid-Continent  market  during  1916 
and  for  the  first  quarter  of  1917  are  as  follows: 

Oklahoma-Kansas — Healdton 


Oklahoma-  Oklahoma- 


1916 

Kansas 

Healdton 

1916 

Kansas 

Healdton 

Jan. 

1 . 

... 

$1.20 

$.60 

Aug.  14 ...  . 

— 

.45 

« 

7. 

... 

— 

.65 

“  15 _ 

.95 

— 

4  4 

20. 

... 

1.25 

— 

“  16.... 

— 

.40 

4( 

21. 

... 

— 

.70 

“  26 _ 

.90 

4 

4  ( 

26. 

... 

1.30 

— 

Nov.  29 _ 

1.00 

— 

44 

27. 

... 

— 

.75 

Dec.  12 ...  . 

1.10 

— 

Mar. 

4. 

... 

1.40 

— 

“  13 _ 

4 

.50 

<  ( 

11. 

... 

1.45 

— 

“  16 _ 

1.20 

— 

44 

13. 

... 

— 

.80 

“  19 _ 

— 

.60 

4  4 

14. 

... 

1.55 

— 

“  23.... 

1.30 

.70 

July 

24. 

.  .  . 

1.45 

— 

“  28 _ 

1.40 

— 

4  4 

25. 

.  .  . 

— 

.70 

“  29 _ 

— 

.75 

t  4 

29. 

.  .  . 

1.35 

— 

4  4 

31. 

... 

.81 

.60 

1915 — High. 

$1.20 

$.60 

Aug. 

1. 

.  .  . 

1.25 

4 

Low. . 

.40 

.30 

44 

2. 

.  .  . 

— 

.50 

1914 — High. 

1.05 

•55 

4  4 

7 . 

... 

1.15 

— 

Low. . 

— 

— 

1917 

Okla. -Kansas 

1917  Healdton 

Jan. 

3 . 

$1.50 

Jan.  4 .  . 

S.80 

Jan. 

6. 

1 .60 

Jan.  8  .  .  .  . 

.85 

Jan. 

12. 

1.70 

Jan.  1'3 _ 

.90 

The  year’s  changes  in  the  high  grade  oils  of  the  Appa¬ 
lachian  fields  were  as  follows: 


I 


# 


Foreword 


21 


Appalachian  Crude  Changes,  1916 


Pennsyl¬ 

vania 

New¬ 

castle 

Mercer 

Black 

Corning  Cabell 

Somer 

set 

-  Rag¬ 
land 

Jan.  1 

$2.25 

$1.75 

$1.75 

$1.75 

$1.78 

$1.63 

$.75 

28 

2.35 

1.85 

1.85 

1.85 

1.88 

1.73 

.80 

Feb.  21 

2.40 

1.90 

1.90 

1.90 

1.95 

1.78 

.82 

Mar.  6 

2.50 

2.00 

2.00 

2.00 

2.02 

1.85 

.85 

17 

2.60 

2.10 

2.10 

2.10 

2.12 

1.95 

.90 

July  29 

2.50 

2.00 

2.00 

2.00 

2.02 

1.85 

.80 

Aug.  3 

2.40 

1.90 

1.90 

1.90 

1.92 

1.75 

.75' 

10 

2.35  * 

1.85 

1.85 

f.85 

1.87 

1.70 

— 

15 

2y30 

1.80 

1.80 

1.80 

1.82 

1.65 

— 

Sept.  28 

2.40 

1.90 

1.90 

1.90 

1.92 

1.75 

.80 

Oct.  10 

2.50 

2.00 

2.00 

2.00 

2.02 

1.85 

.85 

20 

2.60 

2.10 

2.10 

2.10 

2.12 

1.95 

.90 

31 

— 

* _ 

— 

— 

2.07 

1.90 

— 

Dec.  5 

2.75 

— 

2.20 

2.20 

2.17 

2.00 

.95 

29 

2.85 

— 

2.30 

2.25 

2.22 

2.05 

— 

1917— 

Jan.  5 

$2.95 

— 

$2.35 

$2.30 

$2.27 

$2.10 

$.97 

9 

3.05 

— 

2.43 

2.38 

2.35 

*  2.18 

1.00 

Apr.  17 

3.10 

— 

2.45 

2.40 

2.37 

2.20 

1.00 

1915 — 

High 

2.25 

1.75 

1.75 

1.75 

1.78 

1.63 

.75 

Low 

1.35 

.97 

.97 

.83 

.97 

.80 

.63 

1914 — 

High 

2.50 

2.00 

2.00 

2.00 

2.07 

1.35 

.70 

Low 

1.45 

1.02 

1.02 

.85 

1.05 

.85 

.65 

•This 

grade 

was  withdrawn 

i  from 

special 

listing 

October 

31st,  as  the  production  was  too  limited. 


Price  changes  on  other  grades  of  oil  are  as  follows: 

1916  1915 


High 

Low 

High 

Low 

Wooster  . 

$1.80 

$1.50 

$1.50 

$1.13 

Lima  . 

1.73 

1.33 

1.33 

.83 

Illinois  . 

1.82 

1.47 

1.47 

.84 

Princeton  . 

1.82 

1.47 

1.47 

.84 

Plymouth  . 

1.68 

1.33 

1.33 

.43 

Indiana  . 

1.58 

1.18 

1.18 

.78 

Canada  . 

2.13 

1.73 

1.73 

1.28 

North  Texas  (light) . 

1.55 

.90 

1.20 

.45 

North  Texas  (heavy) . 

.80 

.40 

.60 

.40 

North  Louisiana  (light) . .  . 

1.55 

.90 

1.20 

.60 

North  Louisiana  (heavy)  .  . 

.90 

.65 

.80 

.35 

Humble  . 

1.00 

.60 

.60 

.40 

Jennings  . 

1.00 

.45 

.45 

.45 

Sour  Lake  . 

1.00 

.60 

.60 

.40 

Spindletop  . 

.90 

.55 

.55 

.45 

Vinton  . 

1.00 

.60 

.60 

.45 

California  (14  degrees) .... 

.73 

.43 

.40 

.32y2 

California  (37  degrees).... 

1.07 

•62y2 

.62% 

.60 

In  1917,  Illinois,  Indiana  and  Lima  grades  were  advanced 
10  cents  on  January  8th,  and  5  cents  on  January  30th  and 
April  16th,  making  a  net  advance  of  20  cents  so  far  this  year. 

Conforming  to  the  price  changes  in  the  raw  material  of 
the  industry,  the  price  of  gasolene  fluctuated  considerably, 
reaching  a  high  record  of  24  cents  in  March,  which  was 
maintained  until  the  crude  markets  declined  in  August.  The 
price  range  for  1916  in  domestic  gasolene  and  export  naphthas 
and  kerosene  is  outlined  in  the  table  on  the  opposite  page. 


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1917— Bulk— January  9,  4.76c;  January  12,  6c;  March  7,  5.25c;  March  12,  5.5c. 


Foreword 


23 


The  Export  Trade 

The  expansion  of  the  country’s  mineral  oil  export  trade 
during-  the  last  five  calendar  years  is  shown  in  the  following 


table: 

Gallons  Values 

1916 .  2,607,491,209  $201,732,563 

1915 .  2,329,575,617  142,972,322 

1914 .  2,240,031,235  139,900,587 

1913 .  2,136,565,721  149,316,409 

1912 .  1,883,479,897  124,210,382 


The  extent  of  the  gain  in  percentages  is  indicated  below: 


1916 

gain 

over 

1915 . 

Volume 
.  11.93 

Value 

41.10 

1916 

gain 

over 

1914 . 

.  16.40 

45.63 

191*6 

gain 

over 

1913 . 

.  22.04 

35.10 

1916 

gain 

over 

1912 . 

.  38.44 

60.80 

Changes  in  the  character  of  the  export  trade  during  the 
last  five  years  is  shown  in  the  following  table  of  relations  of 
the  different  grades  to  the  general  totals  by  percentage: 


Gasolene, 

Illuminating  Oil  Naphthas,  Etc.  Lubricating  Oil 


Volume 

Value 

Volume 

Value 

Volume 

Value 

1916.  .  .  . 

32.71 

27.68 

13.66 

34.04 

10.00 

21.33 

1915.  .  .  . 

35.31 

12.90 

22.70 

12.90 

22.70 

1914  .  .  .  . 

45.34 

46.21 

8.58 

18.73 

8.58 

18.73 

1913.  .  . . 

53.08 

49.12 

9.77 

19.98 

8.05 

17.75 

1912 _ 

54.48 

49.98 

9.99 

16.47 

11.49 

22.78 

Gas  and 

Fuel 

Oil-Residuum 

Crude 

Oil 

Volume 

Value 

Volume 

Value 

1916. . . . 

36.97 

13.46 

6.60 

3.48 

1915. . . , 

30.57 

15.57 

6.70 

3.00 

1914.  .  . 

31.40 

13.74 

5.57 

3.55 

1913.  , 

20.00 

7.45 

9.10 

5.70 

1912.... 

14.14 

5.31 

10.02 

5.45 

24 


Anglo-American  Oil  Company 


ANGLO-AMERICAN  OIL  COMPANY,  Limited 

The  Anglo-American  Oil  Company,  Ltd.,  was  incorporated 
in  England  in  1888  and  from  that  time  down  to  1911  was  the 
sole  distributor  of  Standard  Oil  Company’s  products  in  Great 
Britain  and  Ireland.  The  Standard  Oil  Company  of  New 
Jersey  at  that  time  owned  all  the  shares.  In  1911  the 
United  States  Supreme  Court  ordered  a  dissolution  of  the 
Standard  Oil  Company  of  New  Jersey,  and  as  a  result  the 
shares  of  the  Anglo-American  Oil  Company,  Ltd.,  were  dis¬ 
tributed  as  a  dividend  to  the  shareholders  of  the  Standard 
Oil  Company  of  New  Jersey,  share  for  share. 

Capital  Stock — The  capital  is  £2,000,000  sterling  ($9,733,- 
330)  in  share  warrants  to  bearer  of  the  par  value  of  £1  each, 
having  been  increased  from  £1,000,000  by  a  100%  stock  divi¬ 
dend  which  was  distributed  November  26,  1913. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  payable  as  follows:  1912,  April  15th,  2  shilling  (10  per 
cent.);  July  15th,  2  shillings  (10  per  cent.);  1913,  January 
15th,  3  shillings  (15  per  cent.);  July  15th,  2  shillings  (10  per 
cent.);  1914,  January  15th,  2  shillings  (10  per  cent.);  July  1st, 
2  shillings  (10  per  cent.);  1915,  January  2,  2  shillings  (10 
per  cent.);  July  2,  2  shillings  (10  per  cent.);  1916,  January 
15,  2  shillings  (10  per  cent.);  July  15,  2  shillings  (10  per 
cent.);  1917,  January  15,  2  shillings  (10  per  cent.)  All  divi¬ 
dends  are  paid  free  of  British  Income  Tax.  Since  1916  divi¬ 
dends  are  payable  on  an  exchange  basis  of  $4.75  to  the  pound 
sterling  at  the  Guaranty  Trust  Company,  New  York. 

Business — The  company  is  the  largest  and  most  important 
petroleum  company  operating  in  the  United  Kingdom.  Its 
sales  include  refined  oil,  gasolene,  lubricating  oil,  gas  and 
fuel  oils  and  paraffin  wax.  The  large  and  increasing  de¬ 
mands  for  some  of  its  products,  notably  gasolene  and  fuel 
oils,  have  required  an  extension  of  its  plants  and  facilities 
and  particularly  the  number  of  ocean-going  tankers  for 
transportation  of  its  various  products  from  the  producing 
countries. 

Plant  and  Equipment — The  company  owns  all  its  large 
ocean  receiving  stations  with  facilities  for  storing  full  car¬ 
goes  from  ocean  tankers  and  in  addition  owns  and  operates 
over  660  interior  distributing  stations  in  Great  Britain  and 
Ireland  for  the  sale  and  distribution  of  its  various  products. 
It  also  owns  over  1,200  railway  tank  wagons  and  a  large  and 
growing  fleet  of  motor  propelled  vehicles  for  road  trans¬ 
portation. 

For  handling  the  trade  on  the  interior  waterways  it  owns 
and  operates  over  50  barges  and  tugs  and  for  coastwise  trade 
employes  its  own  fleet  of  cargo  and  tank  steamers  trading  to 
every  important  port  in  the  Kingdom. 

The  largest  single  investment  is  comprised  in  the  fleet  of 
ocean-going  tank  steamers,  which  has  always  included  some 
of  the  largest  tankers  afloat.  During  the  past  year  (1915) 
the  company  has  added  about  75,000  tons  to  its  ocean  fleet 
which  now  comprises  the  following  vessels: — 

S.S.  “Appalachoe”  S.S.  “Iroquois”  S.S.  “Suwanee” 


44 

“Ashtabula” 

“  “Lackawanna” 

44 

“Strathflllan” 

49 

“Cheyenne” 

“  “Luffwell” 

94 

“Silvertown” 

4  4 

“Cuyahoga” 

"  “Luffworth” 

49 

“Tioga” 

4  4 

“Cadallac” 

“  “Narragansett” 

44 

“Tonawanda” 

4  t 

“Calcutta” 

“  “Navahoe” 

44 

“Tuscarora” 

4  4 

“Delaware” 

“  “Oneida” 

44 

“Tamarac” 

4  1 

“Dakotah” 

“  “Osceola” 

<4 

“Winnibago” 

4  4 

4  1 

"Earl  of  Elgin” 
“Genesee” 

“  “Ottawa” 

"  “Potomac” 

44 

“Westward  Ho” 

Anglo- American  Oil  Company 


25 


During  the  period  of  the  war  a  number  of  these  ships  are 
in  the  Admiralty  service. 

The  total  oil  carrying  capacity  of  this  large  fleet  is  over 
175,000  tons. 

As  an  example  of  the  predominating  position  of  this  com¬ 
pany  in  the  marketing  field  of  the  United  Kingdom,  the  fol¬ 
lowing  table  shows  the  imports  of  various  classes  of  oils  dur¬ 
ing  1915  by  the  larger  English  marketing  companies: 

Gasolene  Illuminating  Other  Oils  Total 


Anglo-Amer . . .  73,800,000 

British  Petrol . 

Bowring  Petrol.  11,000,000 

Anglo-Mex . 

Asiatic  Petrol. .  89,440,000 


85,190,000  154,480,000 

60,000,000  15,280,000 

16,000,000  . 

5,600,000  17,240,000 


313,470,000 

75,280,000 

27,000,000 

22,840,000 

89,440,000 


The  total  petroleum  imports  of  the  United  Kingdom  dur¬ 
ing  1915  exclusive  of  fuel  oil  for  admiralty  use,  were  580,- 
000,000  gallons.  It  is  apparent  therefore  that  the  Anglo- 
American  took  nearly  64  per  cent,  of  the  total  imports.  In 
1914,  these  imports  were  459,744,780  gallons,  of  which  the 
Anglo-American  Company  took  nearly  50  per  cent. 

During  1916,  the  company  has  been  importing  at  the 
same  high  rate  and  its  shipments  have  not  been  interfered 
with  by  the  submarine  blockade. 

Comparative  Balance  Sheets  as  of  December  31,  1915  and 
1914,  reduced  to  United  States  currency  on  the  normal  basis 
of  $4,866  to  £1,  are  as  follows: — 


Assets : 

Freehold  Land  at  Cost . 

Construction  and  Equipment 

Marine  Equipment  . 

Accounts  Receivable  . 

Merchandise  Inventory  . 

Investments  . 

Cash  . 


1915 

$614,785 

2,639,654 

4,063,480 

8,709,391 

7,383,970 

918,404 

2,238.355 


1914 

$572,988 

2,168,670 

3,314,484 

5,803,903 

5,397,787 

919,013 

3,757,703 


Total  Assets  .  $27,023,039 

Liabilities: 

Capital  Stock  .  $9,732,000 

Accounts  Payable  .  6,091,353 

Dividend  Declared  and  Unpaid .  1,029,090 

Surplus  and  Reserves .  10,170,596 


$21,934,548 

$9,732,000 

3,454,553 

8,747,995 


Total  Liabilities  .  $27,023,039  $21,934,548 

Earnings  at  the  rate  of  32  per  cent,  are  indicated,  which 
may  be  regarded  as  remarkable  in  view  of  the  heavy  war 
tax,  amounting  to  practically  one-third  of  the  company’s 
net.  In  addition  the  company  is  maintaining  under  one-half 
pay  1,120  employees  who  have  gone  to  the  front. 

During  1914  and  1913,  earnings  averaged  44.5  per  cent. 

The  financial,  statement  shows  that  the  company  made 
substantial  additions  to  its  marketing  equipment  and  ma¬ 
rine  transportation  service  in  order  to  keep  up  with  trade 
expansion  incident  to  the  war  period. 

Working  capital  increased  from  $12,423,853  to  $13,623,767 
and  Surplus  and  Reserves  show  a  growth  of  $1,222,601  after 
distributing  $2,000,000  in  dividends.  If  it  were  not  for  the 
heavy  war  tax,  under  which  the  company  labors,  it  seems 
probable  that  1915  operations  would  have  shown  profits  of 
$5,000,000  or  at  the  rate  of  50  per  cent. 


26 


Anglo-American  Oil  Company 


While  no  income  account  has  been  furnished  it  is  notable 
that  the  company  had  surplus  and  reserve  accounts  of  $8,- 
139,020  on  December  31,  1912.  This  permits  the  following 
deduction: 


Surplus,  December  31,  1912 .  $8,139,020 

Deduct  stock  dividend,  November  26,  1913 .  4,806,500 


Balance  to  Surplus . $3,273,520 

Surplus,  December  31,  1914 .  8,747,995 

Increase  to  Surplus  from  Dec.  31,  1912 .  5,474,475 

Cash  Dividends,  1913 .  1,216,625 

Cash  Dividends,  1914 .  1,946,660 


Total  Earnings,  1913  and  1914 .  $8,637,760 


This  indicates  average  earnings  at  the  rate  of  44.5  per 
cent,  a  year  for  the  two  year  period,  1913-1914. 

The  company  has  1120  employees  of  all  grades  serving 
with  the  Colors,  to  whom  and  their  families  they  are  paying 
one-half  of  their  regular  salaries,  or  wages.  The  positions 
of  these  men  are  held  open  for  them  upon  return  after  the 
war.  In  addition  to  this  the  company  has  organized  among 
its  employees  in  each  locality  where  it  has  offices,  or 
works,  committees  composed  of  employees  of  the  company 
who  look  after  the  needs  and  welfare  of  the  families  of 
those  who  are  with  the  Army  or  Navy. 

Officers — P.  E.  Powell,  Chairman. 

James  Hamilton,  Vice-Chairman. 

A.  H.  Hewett,  Secretary. 

Directors — The  above  mentioned  officers  and  in  additton: 

W.  P.  MacKendrick. 

Transfer  Office — 36-3S  Queen  Anne’s  Gate,  London,  S.  W., 
England. 


ATLANTIC  REFINING  COMPANY 

The  Atlantic  Refining  Company  was  incorporated  under  the 
laws  of  Pennsylvania  in  1870. 

Capital  Stock — The  capital  stock  is  $5,000,000;  having  been 
'ncreased  from  $400,000  in  1892.  Par  value,  $100. 

Dividends — 1914,  December  15,  5  per  cent.  (Initial  since 
dissolution);  1915,  March  15,  5  per  cent.;  June  15,  5  per  cent.; 
September  15,  5  per  cent.;  December  15,  5  per  cent.:  1916, 
March  15,  5  per  cent.;  June  15,  5  per  cent.;  September  15, 
5  per  cent.;  December  15,  5  per  cent.;  1917,  March  15,  5  per 
cent.  / 

Business — The  company  originally  confined  itself  to  the 
refining  and  marketing  of  oils,  specializing  in  lubricants,  of 
which  it  is  the  world’s  largest  manufacturer.  During  1916, 
however,  the  company  decided  to  include  producing  and 
transporting  to  its  activities  and  formed  the  Atlantic  Oil 
Producing  Company  and  the  Atlantic  Oil  Shipping  Company, 
which  are  described  hereinafter. 

The  ^ompany  makes  every  known  product  from  crude  oil 
and  is  in  the  asphalt  and  road  oil  business  extensively.  The 
company  also  maintains  an  extensive  marketing  system  for 
distributing  its  products  throughout  Pennsylvania,  Delaware 
and  New  England,  which  employs  more  than  200  motor 
trucks,  a  number  of  horse  drawn  vehicles  and  barges,  tug¬ 
boats  and  other  types  of  water  craft  for  transporting  petro¬ 
leum  products  over  inland  waterways.  During  1915  and  1916, 


Atlantic  Refining:  Company 


27 


the  company's  domestic  gasolene  sales  have  been  running 
above  5,000,000  gallons  monthly. 

The  company  also  carries  on  a  very  heavy  export  business 
in  gasolene,  lubricants  and  gas  oil.  Its  overseas  trade  is  so 
large  as  to  constitute  25  per  cent,  of  the  clearance  from  the 
port  of  Philadelphia. 

Refineries  of  the  company  are  located  at  Point  Breeze, 
near  Philadelphia;  at  Pittsburgh,  Penna.,  and  the  Eclipze 
Works  at  Franklin,  Pa.  These  refineries  have  an  estimated 
capacity  of  nearly  50,000  barrels  per  day,  distributed  as  fol¬ 
lows:  Philadelphia,  37,500  barrels;  Franklin,  8,000  barrels, 

and  Pittsburgh,  3,000  barrels.  The  plant  at  Point  Breeze 
covers  about  750  acres,  including  river  frontage  of  2  miles 
on  both  sides  of  the  Schuylkill  River,  and  has  storage 
capacity  for  about  3,000,000  barrels.  The  Eclipse  Work*  at 
Franklin,  Pa.,  occupies  280  acres  on  the  Allegheny  River  and 
has  storage  facilities  for  1,500,000  barrels.  The  Eclipse  Plant 
supplies  the  Galena-Signal  Oil  Company  with  its  entire  supply 
of  distillates  for  the  compounding  of  lubricating  and  illum¬ 
inating  oils,  under  a  ten-year  contract,  based  on  a  sliding 
scale.  The  Pittsburgh  plant  occupies  about  21  acres  located 
on  the  Allegheny  River,  and  has  storage  capacity  for  750,000 
barrels. 


Atlantic  Refining  Company’s  financial  statement  for  1916, 
compares  as  follows: — 


Assets 

1916 

1915 

Cash . 

Reserved  Funds  (for  Ships  and 
Construction)  . 

New 

$873,548 

4,992,250 

$1,214,223 

4,740,000 

Accounts  Receivable . 

Less  Reserve  for  Bad  Debts.... 

$6,890,496 

55,664 

Merchandise  and  Materials . 

6,834,832 

12,226,089 

4,530,692 

11,205,437 

Plant  Accounts . 

Less  Accrued  Depreciation . 

Less  Current  Depreciation . 

$23,377,872 

10,212,981 

407,767 

$20,824,802 

9,535,851 

677,129 

Total  after  Depreciation . 

Other  Investments . 

Loans  to  Producing  &  Shipping 
Prepaid  Debits . 

Co’s 

$12,757,124 

652,553 

3,618,961 

27,265 

$10,611,822 

7,527 

17,599 

$41,982,622 

$32,327,300 

Liabilities 

1916 

1915 

Accounts  Payable . 

Insurance  Account . .  . 

Capital  Stock . 

$1,969,209 

1,037,221 

5,000,000 

$1,130,440 

848,925 

5,000,000 

Surplus,  Prior  Year . 

Less  Dividends . 

$25,347,935 

1,000,000 

$20,755,510 

1,000,000 

•  Carried  Forward . 

$24,347,935 

$19,755,510 

Profits  from  Operations . 

$9,371,258 

$5,381,903 

28 


Atlantic  Refining:  Company 


Profit  from  Appreciation  of  Previous 

Inventories  . .  256,998 


210,522 


Total  Profits 
New  Surplus... 


$9,628,256  $5,592,425 

33,976,192  25,347,935 


Total  Liabilities 


$41,982,622  $32,327,300 


Net  earnings  were  at  the  rate  of  192.56  per  cent,  against 
111.84  per  cent,  in  1915,  which  was  the  previous  high  record 
in  the  company’s  forty-six  years  of  operation.  This  pros¬ 
perity  combined  -with  a  modest  dividend  policy  has  resulted 
in  an  addition  of  $9,628,256  to  surplus,  bringing  the  com¬ 
pany’s  undivided  profits  up  to  $33,976,192  and  giving  the 
stock  a  book  value  of  $779.52.  It  may  be  noted  that  in¬ 
cluding  funds  reserved  for  construction,  investments  and 
loans  to  subsidiary  companies,  which  may  be  regarded  as 
capital  expenditure,  the  company  now  carries  a  total  capital 
investment,  less  depreciation  of  $22,020,888.  This  would  seem 
to  foreshadow  the  possibility  of  a  large  stock  dividend. 


The  president,  J.  W.  Van  Dyke,  states:  “In  common  with 
the  other  industries  of  the  country,  your  company  had  a 
prosperous  year.  This  prosperity  came  at  a  most  opportune 
time,  as  it  has  made  it  possible  to  finance  business  extensions 
and  plant  improvements  which  were  considered  vital  to  the 
future  welfare  •of  your  interests.  The  extensions  referred  to 
have  '  been  particularly  in  the  construction  of  tank  steam¬ 
ships  and  efforts  to  provide  a  crude  oil  supply.  To  carry 
forward  these  movements,  your  directors  caused  to  be  organ¬ 
ized,  under  the  laws  of  Delaware,  the  ‘Atlantic  Oil  Shipping 
Company’  and  the  ‘Atlantic  Oil  Producing  Company’  and 
purchased  the  stocks  of  these  new  corporations  for  your 
company.  The  first-named  concern  has  at  this  time  two 
new  tank-ships  in  commission  and  producing  revenue,  and 
has  contracted  for  the  construction  of  five  additional  ships 
to  be  delivered  during  the  current  year.  The  fleet  thus  pro¬ 
vided  will  represent  an  aggregate  investment  of  about  $8,- 
855,000.  The  Atlantic  Oil  Producing  Company  has  not  as 
yet  been  very  active,  but  has  acquired  a  controlling  interest 
in  a  producing  property  on  the  Panuco  River,  State  of  Vera 
Cruz,  Mexico,  from  which  it  subsequently  expects  to  secure 
a  supply  of  heavy  Mexican  crude  for  your  manufacturing 
plants  in  this  country.” 


As  this  company  has  furnished  a  balance  sheet  as  of 
December  31,  1911,  it  is  possible  to  make  a  complete  tabular 
analysis  of  its  growth  over  five  years  of  independent  operation. 

New  Plant  Depreci-  Surplus  &  Book 
Net  Profits  Dividends  Investment  ation  Ins.  Reserve  Value 
1916 _  $9,628,256  $1,000,000  $2,553,070  $407,767  $35,013,413  $779.52 


1915 _  5,592,425  1,000,000  724,626  677,129  26,196,860  606.95 

1914 _  *940,791  250,000  692,066  451,830  21,297,181  515.11 

1913 _  3,808,777  545,850  606,686  22,380,988  530.94 

1912 _  7,297,672  637,699  651,497  18,404,623  463.76 

1911 .  10,890,463  317.80 


*Prior  to  writing  off  a  loss  of  $1,932,143  for  depreciation  of  prior 
inventories. 


The  above  does  not  reflect  fully  the  company's  growth, 
which  is  more  strikingly  exemplified  in  the  following  com¬ 
parative  tables: 


Atlantic  Refilling:  Company 


29 


Analysis  of  Capital  Investment 

1916  1911  Difference 

Plant  Accounts . $23,377,872  $18,224,591  $5,153,281+ 

Less  Accrued  Depreciation  10,620,748  7,825,838  2,794,910+ 


$12,757,124  $10,398,753  $2,358,371+ 

dash  Res.  for  New  Construe.  4,992,250  . 

Invest.  Stocks  of  Subs.  Co’s  652,553  . , . . 

Loans  to  Subsidiary  Co’s...  3,618,961  . . 


$22,020,888  $10,398,753  $11,622,135+ 

Growth  of  Assets 

1916  1911  Difference 

Capital  Assets  . $22,020,888  $10,398,752  $11,622,136+ 

Current  Assets  .  19,961,734  14,640,824  5,320,910+ 


$41,982,622  $25,039,576  $16,943,046+ 

Capital  Liabilities .  5,000,000  5,000,000  . 

Current  Liabilities .  1,969,209  9,149,113  7,179, 904- 

Insurance  Reserve .  1,037,221  .  1,037,221+ 

Surpl.  of  Undivided  Profits  33,976,192  10,890,463  23,085,729+ 


$41,982,622  $25,039,576  $16,934,046+ 

To  handle  its  expansion  in  production  and  shipping:  the 
company  has  formed  two  subsidiaries,  which  may  be  described 
as  follows: 

ATLANTIC  OIL  SHIPPING  COMPANY 

( 

Incorporated  in  Delaware  in  June,  1916.  Capitalization, 
$500,000;  par  value,  $100.  All  but  qualifying  shares  are 
owned  by  Atlantic  Refining  Company. 

Properties — The  company  owns  and  operates  a  growing 
fleet  of  tankships  of  the  most  modern  pattern.  During  1916, 
two  vessels  were  launched  and  placed  in  operation  and  four 
others  are  to  be  completed  during  the  current  year.  The 
company’s  fleet  consists  of  the  following: 

In  Operation 

Vessel  Gross  Tonnage 

H.  C.  Folger . .  7,100 

J.  W.  Van  Dyck .  7,100 


14,200 

8,400 

7,200 

7,200 

7,200 


30,000 

In  addition  the  company  operates  a  number  of  barges, 
launches  and  tug  boats  for  interior  water  traffic. 

ATLANTIC  OIL  PRODUCTION  COMPANY 

Incorporated  in  Delaware  in  June,  1916.  Capitalization, 
$100,000;  par  value,  $100.  All  but  qualifying  shares  are 
owned  by  the  Atlantic  Refining  Company. 

Properties — The  company  has  purchased  a  controlling  in¬ 
terest  in  the  Panuco-Boston  Oil  Company  and  has  advanced 
that  company  $100,000  to  develop  its  properties. 


Scheduled  for  1917  Completion 

J.  C.  Donnell . 

J.  E.  O’Neill . 

No.  144 . . . 

No.  148  . 


30 


Borne- Scry  mser  Company 


The  Panuco-Boston  Oil  Company  operates  a  lease  of  522 
acres  on  the  Panuco  River,  on  which  there  are  two  producing 
wells.  Well  No.  1  is  producing  2,200  barrels  daily  and  its 
output  is  sold  under  a  long  time  contract  to  the  Interocean 
Oil  Company.  Well  No.  2,  brought  in  since  Atlantic  Refining 
Company  acquired  its  interest  is  good  for  5,000  barrels  daily. 
The  equipment  on  the  property  consists  of  two  55,000-barrel 
tanks,  one  Ifovv  tank  <  f  i .  i-ane.s,  earthen  storage,  50,000 
barrels;  and  three-quarters,  mile  of  pipe  line,  pumping 
station,  shipping  wharf,  drilling  rigs,  etc.  The  capitalization 
of  the  Panuco-Boston  Company  is  $1,000,000;  par  value,  $100; 
and  $155,000  of  first  mortgage  bonds  outstanding. 

The  Atlantic  Oil  Production  Company  is  building  an  exten¬ 
sive  storage  and  shipping  station  close  to  Tampico  on  the 
Panuco  River. 

So  far  the  company  has  not  announced  any  purchases  of 
production  in  this  country,  but  it  has  lately  sent  a  repre¬ 
sentative  to  the  new  Kentucky  fields. 

Officials  of  the  Atlantic  Refining  Company  are  as  follows:: 

Officers — President — J.  W.  Van  Dyke. 

Vice-Presidents — W.  P.  Cutler  and  W.  M.  Irish. 
Secretary — W.  D.  Anderson. 

Treasurer — Henry  S.  Mustin. 

Directors — J.  W.  Van  Dyke,  W.  P.  Cutler,  W.  M.  Irish, 
H.  S.  Mustin,  J.  W.  Liberton,  E.  G.  Glines,  R.  D„ 
Leonard. 

Transfer  Office — 3141  Passayunk  Avenue,  Philadelphia,  Pa. 


BORNE  SCRYMSER  COMPANY 

The  Borne  Serymser  Company  was  Incorporated  in  189$ 
under  the  laws  of  New  Jersey. 

Capital  Stock — The  capital  stock  is  $200,000.  Par  value, 
$100. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows:'  December  20,  1912,  20  per  cent.;  October  15,  191$, 
20  per  cent.:  October  15,  1914,  20  per  cent.;  October  15,  1915, 

20  per  cent.;  October  16,  20  per  cent. 

Properties — The  business  of  the  company  comprises  prin¬ 
cipally  the  compounding  and  marketing  of  lubricating  oils. 
A  larger  plant  has  been  constructed  during  1916  at  Elizabeth- 
port,  N.  J.  The  change  from  the  former  location  at  Clairmont, 
Jersey  City,  was  made  necessary  by  the  increasing  domestic 
and  export  business.  The  company  transacts  a  large  business 
in  England,  and  has  branch  offices  in  the  large  cities  of  the 
United  Kingdom. 

The  book  value  of  thiB  Company’s  stock  was  carried  by 
the  Standard  Oil  of  New  Jersey  on  December  $1,  1906,  at 
$284,771. 

During  the  eight  year  period  1899-1906,  the  average  net 
profits  were  $52,566,  equal  to  26.3  per  cent,  on  the  $200,000 
capital  stock  outstanding.  Since  the  dissolution  the  com¬ 
pany’s  profits  have  averaged  slightly  in  excess  of  30  per  cent. 

Officers — President — O.  G.  Waring. 

Vice-President — T.  G.  Sullivan. 

Secretary — A.  C.  Weed. 

Directors — The  above-named  officers  and  in  addition: 

G.  H.  Kline. 

Transfer  Office — 80  South  Street,  New  York  City. 


Tlie  Buckeye  Pipe  Line  Company 


31 


THE  BUCKEYE  PIPE  LINE  COMPANY 

The  Buckeye  Pipe  Line  Company  was  incorporated  March 
81,  1886,  under  the  laws  of  Ohio. 

Capital  Stock — The  capital  stock  was  originally  $100,000, 
but  this  was  increased  to  $10,000,000  in  1890  and  1892.  Par 
value,  $50. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  as  follows:  1912,  40  per  cent.;  1913,  40  per  cent.; 
1914,  28  per  cent.;  1915,  16  per  cent.;  1916,  16  per  cent.; 
1917,  March  15,  4  per  cent.;  June  15,  4  per  cent. 

Properties — The  Buckeye  Pipe  Lines  form  a.  part  of  an 
extensive  system,  covering  the  entire  State  of  Ohio.  It  com¬ 
prises  two  systems,  the  Lima  division  operating  in  the  North 
and  the  Macksburg  division  serving  the  Southeastern  Ohio 
fields.  The  main  trunk  line  in  the  Lima  division  is  295.5 
miles  in  length,  consisting  of  double  and  triple  loopings  of 
5,  6  and  8  inch  pipes.  There  are  a  thousand  miles  of  pipe 
in  this  trunk  line  division  and  more  than  a  thousand  miles 
\  of  gathering  lines.  Oil  from  the  Mid-Continent  field  is  de¬ 
livered  by  the  Indiana  Pipe  Line  to  the  Buckeye  system, 
which  delivers  it  to  the  Imperial  Oil  Company’s  Canadian 
pipe  line  at  Toledo,  to  the  Standard  Oil  of  Ohio’s  Cleveland 
refinery  or  to  the  Northern  Pipe  Line  at  the  Ohio-Pennsyl- 
vania  border. 

There  are  two  8-inch  lines  running  from  Whiting,  Indiana, 
eastward,  to  Lima,  Ohio,  which  are  joined  just  west  af  the 
Ohio-Indiana  State  line  by  a  6-inch  line  extending  eastward 
from  Montpelier,  Indiana.  At  Lima  those  lines  deliver  to  the 
Solar  Refining  Company,  a  Standard  Oil  concern.  Thence  they 
extend  northwest  to  Findlay  and  Cygnet,  Ohio.  At  Cygnet, 
which  is  nearly  due  south  of  Toledo,  various  collecting  lines 
from  fields  toward  the  north  join  the  main  stem.  These 
latter  lines  are  also  connected  with  Toledo,  where  they  supply 
crude  oil  to  the  Craig  Refinery."  The  main  pipe  lines  continue 
eastward  in  almost  a  direct  line  from  Cygnet  to  Bear  Creek, 
Penna.  A  branch  of  this  line  starting  at  Mantua,  Ohio, 
delivers  crude  oil  to  the  Cleveland  refineries. 

The  company’s  earnings  and  dividends  since  the  dissolu¬ 
tion  are  as  follows: 

Book 

Net  Profits  Rate  Dividends  Surplus  Value 

1916 .  $2,082,068  20.8%  $1,600,000  $9,430,910  $97.15 


1915 .  1,523,801  15.2%  1,600,000  8,948,842  94.72 

1914 .  2,417,157  24.0%  2,800,000  9,025,041  95.25 

1913 .  3,632,581  36.0%  4,000,000  9,407,884  97.03 

1912 .  6,000,422  60.0%  4,000,000  9,775,303  108.00 


The  progressive  decline  in  earnings  between  1912  and 
1915  was  due  not  only  to  a  falling  off  in  the  company’s 
gathering  line  business  through  the  exhaustion  of  the  Ohio 
oil  fields,  but  also  to  the  radical  readjustment  in  rates  after 
June  1913,  when  the  United  States  Supreme  Court  declared 
the  pipe  lines  common  carriers.  Immediately  thereafter  it 
became  necessary  to  m’ake  a  competitive  through  rate  on 
oil  from  Oklahoma  to  New  York  and  Philadelphia,  against 
the  vrater  rate  between  Gulf  Coast  ports  and  those  points. 
The  previous  rate  of  $1.25  a  barrel  between  Mid-Continent 
points  and  the  Atlantic  seaboard  was  cut  to  70  cents,  a 
40  per  cent,  reduction.  It  will  be  noticed  that  because  of 
improved  conditions  in  the  industry  and  the  increasing  de¬ 
mand  for  Mid-Continent  oil  by  seaboard  refineries,  the  com- 


\ 


32  The  Buckeye  Pipe  Line  Company 


pany’s  traffic  and  profits  increased  25  per  cent,  in  1916. 
This  would  seem  to  insure  a  continuance  of  the  16  per  cent, 
dividend  rate. 


Assets : 

Pipe  Line  Plant.. . 

Materials  and  Supplies.. 
Cash,  other  Invest,  and 
Accounts  Receivable .  . 


Liabilities : 

Capital  Stock . 

Accounts  Payable . 

Reserve  Acct.  for  Ac¬ 
crued  Depreciation.... 
Fire  Insurance  Reserve.. 
Profit  and  Loss  Surplps 


of  December 

31  compare 

as 

follows: 

1916 

1915 

$15,479,981 

$15,600,638 

— 

$120,657 

43,707 

26,846 

+ 

16,861 

8,672,578 

7,494,649 

+  1,177,929 

$24,196,266 

$23,122,133 

+$1,074,133 

$10,000,000 

330,647 

130,009 

+ 

$200,638 

4,414,135 

4,043,282 

+ 

370,153 

20,573 

+ 

20,573 

9,430,910 

8,948,842 

+ 

782,078 

$24,196,265 

$23,122,133 

+$1,074,132 

Earnings  were  at  the  rate  of  20.8  per  cent,  compared  with 
15.2  per  cent,  in  1915,  24  per  cent,  in  1914  and  36  per  cent,  in 
1913.  The  company’s  cash  position  has  improved  materially 
through  its  conservative  dividend  policy  and  net  cash  assets 
now  amount  to  $41.70  a  share. 

At  the  close  of  1906  the  company’s  net  assets  were  $12,- 
204,543  against  $19,430,910  at  the  close  of  1916,  indicating  a 
growth  of  $7,226,367  in  ten  years. 

Traffic  over  the  company’s  lines  for  the  last  five  years 
compares  as  follows: 


LIMA  DIVISION 


Runs 

Other 

from  Wells 

Receipts 

Deliveries 

Total 

3 

Months, 

1917. . 

494,437 

5.754,260 

6,343,243 

Total 

12 

Months, 

1916. . 

2,114,421 

22,929,155 

24,490,516 

Total 

12 

Months, 

1915. . 

2,283,637 

18,230,139 

20,169,428 

Total 

12 

Months, 

1914.  . 

2,567,268 

16,302,421 

20,402,119 

Total 

12 

Months, 

1913. . 

2,665,108 

22,874,505 

26,614,010 

MACKSBURG  DIVISION 

Runs 

Other 

from  Wells 

Receipts 

Deliveries 

Total 

3 

Months, 

1917. . 

837,431 

10,428 

884,788 

Total 

12 

Months, 

1916.  . 

3,218,990 

50,657 

3,429,011 

Total 

12 

Months, 

1915. . 

3,265,330 

57,781 

3,350,829 

Total 

12 

Months, 

1914. . 

3,434,251 

69,075 

3,383,608 

Total 

12 

Months, 

1913. . 

3,473,962 

88,143 

3,716,913 

Directors — D.  S.  Bushnell,  New  York;  O.  S.  June,  Lima,  O. ; 
R.  L.  Bates,  Lima,  O. ;  L.  C.  Welch,  Cleveland,  O. ;  T.  W. 
Dillon,  Toledo,  O. 

Officers — President — D.  S.  Bushnell. 

Vice-President — O.  S.  June. 

Secretary — George  Chesebro. 

Assistant  Secretary — J.  R.  Fast. 

Treasurer — W.  A.  Harris. 

Transfer  Office — 26  Broadway,  New  York  City. 

Annual  Meeting — Fourth  Wednesday  in  May. 


Chesebrough  Manufacturing  Company 


33 


CHESEBROUGH  MANUFACTURING  CO. 

(Consolidated) 

The  Chesebrough  Manufacturing  Company  was  incorporated 
in  1880  under  the  laws  of  New  York. 

Capital  Stock — The  capital  stock  of  the  company  is  $1,- 
600,000.  Par  value,  $100,  having  been  increased  from  $500,000 
by  a  vote  of  the  shareholder  on  May  4,  1916,  through  a  200 
per  cent  stock  dividend  which  was  distributed  on  June  10, 
1916. 


Dividends- 

— Since 

1900  dividends 

have  been  declared  as 

follows: 

1900. . . 

26 

per  cent. 

1908. 

.  40 

per  cent. 

1901. . . 

30 

per  cent. 

1909. 

.  60 

per  cent. 

1902. . . 

24 

per  cent. 

1910. 

.  40 

per  cent. 

1903.  .  . 

18 

per  cent. 

1911. 

.  30 

per  cent. 

1904. . . 

18 

per  cent. 

1912. 

.  50 

per  cent. 

1905. . . 

18 

per  cent. 

1913. 

_ _  40 

per  cent. 

1906. . . 

•  -2iy2 

per  cent. 

1914. 

.  40 

per  cent. 

1907. . . 

40 

per  cent. 

1915. 

.  40 

per  cent. 

1916- 

— March 

18. 

.  6% 

&  4  % 

extra 

$50,000 

June 

10. 

. 200% 

Stock  Dividend 

June 

29  . 

.  3% 

&  y»  % 

extra 

52.500 

Sept. 

20. 

.  3% 

&  %% 

extra 

52,500 

Dec. 

20. 

.  3% 

&  y2% 

extra 

52,500 

10%  &  10 y>%  extra 

$207,500 

1917- 

— March 

19. 

.  3% 

&  %  % 

extra 

52,500 

Properties — The  company’s  principal  business  is  the  manu¬ 
facture  of  vaselene  and  chemical  bases  from  crude  petroleum 
for  various  pharmacal  products.  The  plant  of  the  company 
is  located  at  Perth  Amboy,  N.  J.,  and  it  also  operates  dis¬ 
tributing  stations  in  the  large  cities  throughout  the  world. 
Owing  to  the  enormously  increased  demand  for  the  company’s 
pharmaceutical  products  in  the  military  hospitals  of  Europe, 
the  company  was  obliged  to  expend  $65,000  in  expanding  its 
plant  during  1915  and  expended  $185,000  additional  during 
1916.  It  rents  a  large  office  building  at  No.  17  State  Street, 
New  York. 

During  1915  the  company  placed  on  the  market  an  «dor- 
less  and  tasteless  preparation  of  crude  oil  for  medicinal  pur¬ 
poses  under  the  trade  name  of  “White  Diquid  Vaseline.”  The 
preparation  is  enjoying  a  large  sale,  as  physicians  have  found 
it  an  excellent '  remedy  for  intestinal  stasis. 

During  the  eight-year  period  1899-1906,  the  average  net 
profits  were  $157,447,  or  equal  to  31.5  per  cent,  on  the 
$500,000  capital  stock  outstanding.  At  the  close  of  1906  the 
company’s  net  assets  were  $1,090,575,  indicating  a  surplus  of 
$590,575.  In  the  ten  year  period  1906-1916,  the  company  has 
distributed  $2,107,500  in  cash  dividends  and  $1,000,000  in 
stock  at  par  to  its  shareholders. 

Officers — President — O.  M.  Cammann. 

Vice-President — C.  W.  McGee. 

Secretary — R.  S.  Gill. 

Treasurer — C.  Lamont. 

Ass’t  Secretary  and  Treasurer — F.  H.  Williams. 

Trustees— O.  M.  Cammann,  C.  W.  McGee.  R,  S.  Gill.  C. 
Lamont,  R.  A.  Chesebrough,  S.  A.  Drew,  W.  C.  Cammann, 
Lewis  C.  Waring,  Russel  E.  Burke. 

Transfer  Office — 17  State  Street,  New  York  City. 


34 


Colonial  Oil  Company 


COLONIAL  OIL  COMPANY 

The  Colonial  Oil  Company  was  incorporated  in  1901,  under 
the  laws  of  New  Jersey. 

Capital  Stock — The  capital  stock  is  $250,000.  Par  value, 

*100. 

Dividends — The  only  dividend  declared  since  the  dissolu¬ 
tion  was  one  of  100  per  cent.,  paid  in  liquidation  on  May 

1,  1916. 

Properties — This  company  was  engaged  exclusively  in 
marketing  Standard  Oil  products  in  South  Africa  and  Aus¬ 
tralia. 

The  directors  of  the  old  Standard  Oil  Company  of  New 
Jersey  had  decided  to  dissolve  the  Colonial  Oil  Company, 
and  preparatory  to  this  end  had  transferred  most  of  the 
foreign  marketing  agencies  of  the  Colonial  in  South  Africa, 
Australia  and  China  to  the  Standard  Oil  of  New  York  and 
the  Vacuum  Oil '  Company.  The  process  of  liquidating  the 
company  was  halted  by  the  announcement  of  the  Govern¬ 
ment’s  decree  of  dissolution.  This  left  Colonial  Oil  with 
only  one  marketing  station,  located  in  Buenos  Ayres.  The 
Standard  Oil  Company  of  New  Jersey  also  has  operated  a 
marketing  .station  in  Buenos  Ayres  in  competition  with  the 
Cononial  Oil  Company. 

Stockholders  of  the  company  at  a  special  meeting  No¬ 
vember  24,  1915,  voted  approval  of  a  resolution  of  the  direc¬ 
tors,  to  dissolve  the  company 

Colonial  Oil  Company  issued  in  April,  1916,  the  following 
statement  regarding  the  progress  achieved  in  liquidating  the 
company : 

“The  Directors  of  the  Colonial  Oil  Company,  acting  as 
Trustees  in  Dissolution,  are  proceeding  as  rapidly  as  possible 
to  convert  the  property  of  the  company  into  cash  for  distri¬ 
bution  among  the  stockholders.  A  very  large  proportion  of 
the  assets  consists  of  bills  and  accounts  receivable  at  Buenos 
Aires,  Argentine  Republic,  all  of  which,  it  is  hoped,  will  be 
collected,  although  financial  conditions  in  that  country  are 
such  that  there  may  be  considerable  delay  in  converting  these 
into  cash. 

“The  books  of  the  company  show  the  following  assets  as 
of  March  1st,  1916: 


Assets 

Cash  and  Demand  Loans .  $381,793.92 

Notes  and  Accounts  Receivable .  249,648.98 

Real  Estate,  Buenos  Aires,  Argentine .  20,244.33 

Plant  Equipment,  Office  Furniture  and  Mis¬ 
cellaneous  Items  .  9,685.24 


Total  .  $611,372.42 

Liabilities 

Indebtedness  as  of  March  1,  1916 .  $129,047.75 


Net  Assets  . .  $482,325.00 


“Since  March  1.  1916.  some  of  the  accounts  receivable 
have  been  paid  and  the  moneys  in  the  hands  of  the  Trustees 
at  the  present  time  are  sufficient  to  pay  the  indebtedness  of 
the  company  and  leave  a  surplus  which  .justifies  the  distribu¬ 
tion  at  this  time  of  $100  per  share  on  the  outstanding  $250,000 
par  value  of  capital  stock.  Such  sum,  has,  therefore,  been 
ordered  paid  to  the  stockholders  of  record  as  of  May  1,  1916, 
in  proportion  to  their  several  and  respective  holdings. 

“The  stock  transfer  books  of  the  company  have  been 
permanently  closed.” 


Continental  Oil  Company 


35 


The  financial  statement  furnished  by  the  company  shows 
net  assets  of  $482,325  or  a  book  value  of  $190  a  share.  Sub¬ 
tracting  the  value  of  the  real  estate  and  plant  equipment, 
there  were  liquid  assets  of  $178  a  share  on  March  1,  1916. 

Officers — President — E.  T.  Bedford. 

Vice-President — W.  J.  Fisher. 

Secretary  and  Treasurer — F.  A.  Morrell. 

Transfer  Office — No.  17  Battery  Place,  New  York  City. 


CONTINENTAL  OIL  COMPANY 

The  Continental  Oil  Company  was  incorporated  in  March, 
1913.  under  the  laws  of  Colorado. 

Capital  Stock — The  Capital  Stock  is  $3,000,000.  Par  value. 

The  original  Continental  Oil  Company  was  incorporated  in 
Iowa  in  1884,  with  a  capital  of  $300,000.  On  May  8,  1913,  the 
stockholders  ratified  the  proposition  to  turn  the  business  and 
assets  of  the  company  over  to  the  new  Colorado  corporation. 

The  stock  of  the  Continental  Oil  Company  of  Colorado  was 
thereupon  distributed  to  the  stockholders  of  the  Continental 
Oil  Company  of  Iowa,  in  the  ratio  of  ten  shares  of  the  new 
corporation  in  exchange  for  each  share  of  the  old  corporation; 
and  as  to  fractional  shares,  each  holder  received  a  fractional 
share  ten  times  as  great  as  his  holding  in  the  Iowa  company. 
This  is  equal  to  a  900  per  cent,  stock  dividend. 

Dividends — Since  the  dissolution  dividends  have  been  paid 
as  follows:  1912,  70  per  cent,  (old  capitalization);  1913, 
6  per  cent.;  1914,  12  per  cent.;  1915,  12  per  cent.;  1916, 
12  per  cent.;  1917,  March  16,  3  per  cent.  (Q). 

Properties — This  is  a  marketing  company,  operating  in  the 
Rocky  Mountain  States  of  Montana,  New  Mexico,  Utah,  Idaho, 
Wyoming  and  Colorado,  as  well  as  in  the  Canadian  Provinces 
of  Manitoba  and  Saskatchewan. 

The  company  recently  absorbed  the  United  014  Company 
of  Colorado  and  appropriated  $200,000  to  modernize  the  re¬ 
finery  at  Florence,  Colorado. 

The  change  in  location  of  the  corporation  was  deemed 
advisable  for  the  reason  that  the  business  of  the  Continental 
Oil  Company  is  largely  carried  on  in  the  Rocky  Mountain 
States  and  a  “home  company”  was  desired  in  order  to  enable 
operations  under  a  charter  from  the  State  of  Colorado,  in 
which  are  located  the  general  offices  at  Denver.  The  company 
markets  the  products  of  the  refineries  at  Florence,  Colo.,  and 
recently  has  been  handling  the  output  of  the  refineries  at 
Casper,  W'yo.,  of  the  Midwrest  Refining  Company  and  the 
Standard  Oil  Company  Indiana. 

The  new  refinery  of  the  Standard  Oil  Company  or  Indiana 
at  Casper,  began  operations  in  May,  1914,  and  thereby  enabled 
the  Continental  Oil  Company  to  expand  further  its  marketing 
operations.  A  part  of  this  new  refinery  is  devoted  to  the 
production  of  motor  spirits  and  the  Continental  Oil  Company 
has  profited  by  the  advantage  of  marketing  this  substitute  for 
gasolene  in  its  territory.  It  seems  apparent  that  the  com¬ 
pany  will  show  largely  increased  profits  in  the  future,  con¬ 
sidering  the  extension  of  its  business.  To  accommodate  its 
trade  expansion,  the  company  has  erected  at  Casper,  addi¬ 
tional  storage  and  a  new  casing  and  distributing  station, 
which  is  the  largest  in  the  Northwest. 

The  future  of  this  company  looms  large  as  the  develop¬ 
ment  of  Wyoming  and  Montana  as  producing  and  refining 
centers  becomes  more  and  more  important. 


36 


The  Crescent  Pipe  Line  Company 


Earnings — No  financial  statement  has  been  issued  since  the 
dissolution,  but  the  Federal  Trade  Commission  reports  that 
in  1915,  the  company  earned  $1,543,037,  or  at  the  rate  of  51.4 
per  cent.,  and  that  the  company’s  capital  and  surplus  on 
December  31,  1915,  was  $5,716,704.  As  the  company  admits 
that  1916  was  the  best  year  in  its  history  and  earnings  are 
unofficially  reported  at  more  than  70  per  cent.,  it  is  likely 
that  the  company’s  capital  and  surplus  at  the  close  of  1916 
was  around  $7,500,000. 

Officers — President — E.  T.  Wilson. 

Vice-President — H.  T.  Cleaver. 

Secretary  and  Treasurer — C.  E.  Strong. 

General  Manager — J.  B.  F.  Reynolds. 

Transfer  Office — McPhee  Building,  Denver,  Colorado. 

Annual  Meeting — Third  Thursday  in  January. 

<Q  - 

THE  CRESCENT  PIPE  LINE  COMPANY 

The  Crescent  Pipe  Line  Company  was  incorporated  in  1891 
under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  was  originally  $100,000, 
but  this  was  increased  to  $3,000,000  in  1906.  Par  value,  $50. 

Dividends — Since  the  dissolution,  the  dividend  rate  has 
been  as  follows:  1912,  12  per  cent.;  1913,  12  per  cent.;  1914, 
9  per  cent.;  1915,  6  per  cent.;  1916,  6  per  cent.;  1917,  March 
15,  IV2  per  cent.;  June  15,  IV2  per  cent. 

Properties — The  Crescent  Pipe  Line  forms  the  main  trunk 
of  what  is  known  as  the  Middle  Division  of  the  Appalachian 
Pipe  Line  System.  The  line  is  about  315  miles  long,  and  is 
constructed  of  5-inch  and  6-inch  pipe.  It  extends  from  Greggs 
in  Western  Pennsylvania,  where  it  connects  with  the  South- 
West  Pennsylvania  Pipe  Lines  (from  which  lines  it  receives 
the  traffic)  in  almost  a  direct  line  southeasterly  to  Marcus 
Hook,  south  of  Philadelphia,  which  is  an  important  exporting 
point  for  crude  oil.  The  pumping  stations  average  43  mi^es 
apart. 

Crescent  Pipe  Line  Company’s  financial  statement  for  1916 
permits  of  the  following  review  of  the  five-year  period: 

Net  Profits  Rate  Dividends  Surplus  Blc.Val. 


1916 .  $193,072  6.43%  $180,000  $362,684  $56.04 

1915 .  187,269  6.24%  180,000  349,613  55.82 

1914 .  269,658  8.98%  270,000  342,245  55.70 

1913 .  370,849  12.30%  360,000  342,686  55.71 

1912 .  426,111  14.20%  360,000  331,792  55.53 


The  company’s  decline  in  earnings  has  been  due  not  so 
much  to  falling  off  in  traffic  as  to  reduced  rates.  The  com¬ 
pany  has  no  carrying  lines,  but  depends  entirely  on  trunk 
line  business  furnished  by  the  South  West  Pennsylvania 
Pipe  Lines’  gathering  system. 

The  balance  sheet  for  1916  compares  as  follows: 


Assets: 

Plant  . . 

Materials  and  Supplies. 
Cash,  etc . 


1916 

$913,986 

5,224 

2,510,195 


1915 

$926,609 

7,324 

2,479,670 


Total  Assets .  $3,429,405  $3,413,603 

Liabilities : 

Capital  .  $3,000,000  $3,000,000 

Accounts  Payable .  66,721  63,990 

Profit  and  Loss  Surplus .  362,684  349,613 


$3,429,405  $3,413,603 


Total  Liabilities 


Cumberland  Pipe  Line  Company 


37 


Net  earnings  were  at  the  rate  of  6.43  per  cent.,  which 
compares  with  6.24  per  cent,  in  the  previous  year.  The 
company  is  in  a  very  easy  cash  position,  net  cash  assets 
representing  $40.72  a  share. 

At  the  close  of  1906,  the  company’s  net  assets  were  $2,- 
986,413  against  $3,362,684  at  the  end  of  1916,  a  gain  of  only 
$376,271  over  the  period.  It  is  worthy  of  note,  however, 
that  the  company’s  cash  assets  per  share  are  in  excess  of  its 
average  market  price  in  the  first  quarter  of  1917. 

Traill#  over  these  lines  since  the  dissolution  has  been  as 
follows: 

Other  Receipts 

(Barrels) 

Total  3  Months,  1917 .  448,299 

Total  12  Months,  1916 .  1,845,163 

Total  12  Months,  1915 .  1,753,336 

Total  12  Months.,  1914 .  1,261,210 

Total  12  Months,  1913 .  1,435,856 

Officers — President — R.  R.  Applegate. 

Vice-President — Charles  Shoemaker. 

Secretary  and  Treasurer — L.  E.  Lockwood. 

Transfer  Office — 323  Fourth  Avenue,  Pittsburgh,  Penna. 


Deliveries 
(Barrels) 
416,562 
xl, 850,520 
2,731,153 
1,244,935 
1,594,018 


CUMBERLAND  PIPE  LINE  COMPANY 
Incorporated 

The  Cumberland  Pipe  Line  Company  was  incorporated  in 
1991  under  the  laws  of  Kentucky. 

Capital  Stock — The  capital  stock  is  $1,000,000.  Par  value. 
$100,  having  been  raised  from  an  original  capitalization  of 
$100,000  prior  to  the  dissolution. 

Dividends — Since  the  dissolution,  the  company  has  paid 
annual  dividends  as  follows:  1912,  •  December  16th,  6  per 
cent.;  1913,  December  15th,  6  per  cent.;  1914,  December  15th, 
•  per  cent.;  1915,  December  15,  5  per  cent.;  1916,  Decem¬ 
ber  18,  5  per  cent. 

Properties— The  company  owns  256,7  5'0  barrels  of  iron 
tankage,  5  main  line  pumping  stations,  20  local  pumping 
stations  and  467  miles  of  pipe  line  of  various  sizes  from 
2-inch  to  6-inch  pipe. 

The  main  lines  embrace  51  miles  of  6-inch  and  154  miles  of 
4-inch  pipe,  extending  from  Monticello  Station  via  Somerset  and 
Licking  River  Junction  to  Clifford  on  Tug  Fork,  connecting 
at  that  point  with  the  Eureka  Pipe  Line  Company  and  from 
Page  Hollow  via  Lewis  to  Licking  River  Junction.  Oil  from 
the  Ragland  field  is  shipped  by  tank  cars  from  Salt  Lick, 
Bath  County.  With  the  opening  of  the  new  Irvine  Field  in 
Estill  County,  Kentucky,  in  1916,  the  company’s  traffic  pros¬ 
pects  increased  so  heavily  that  a  three-inch  trunk  line  was 
run  from  Leander  to  Ravenna,  where  a  storage  farm  and 
pump  station  was  erected,  while  a  35,000  barrel  storage 
tank  and  a  pump  station  were  erected  at  Leander.  The  first 
oil  from  Irvine  was  run  into  the  line  in  April,  1916.  A  sec¬ 
ond  four-inch  extension  was  laid,  with  branch  lines  to  the 
Station  Camp  pool,  ten  miles  southwest  of  Irvine  and  to 
Estill  Furnace,  an  eastern  extension  of  the  Irvine  district. 
A  third  four-inch  trunk  line  is  nearing  completion  and  will 
be  in  operation  by  June,  1917.  In  April,  1916,  the  company 
ran  7,100  barrels  of  oil  from  Irvine  during  the  first  week’s 
operation  of  the  new  line.  In  the  first  week  of  April,  1917, 


38 


Cumberland  Pipe  Line  Company 


> 


the  company  took  42,000  barrels  from  the  same  district. 
With  the  third  spur  line  in  operation,  the  company  antici¬ 
pates  running  12,000  barrels  of  oil  daily  from  the  Kentucky 
fields  over  the  last  half  of  the  current  year. 

With  the  active  development  now  in  progress  over  the 
whole  state  of  Kentucky,  there  is  likelihood  that  the  com¬ 
pany  may  have  to  expand '  its  plant  and  equipment  very 
materially  during  the  coming  year. 

Production  from  Wayne,  Wolf,  Morgan,  Floyd,  Knott  and 
Lawrence  counties  is  delivered  to  the  Eureka  Pipe  Line  at 
Clifford  on  Tug  Fork. 

The  financial  statement  of  this  company  for  1916  com¬ 
pared  with  that  of  the  previous  year,  is  as  follows: — 


1916  1915 

♦Net  Profits  .  $179,366  $33,001 

Dividends  . . .  50,000  50,000 


Surplus  .  $129,366  f$17,999 


♦Equal  to  17.9  per  cent,  earned  on  $1,000,000  capital  stock, 
against  3.20  per  cent,  in  1915. 

•(•Deficit. 


Assets  s 

Plant  . 

Other  Investments  . 
Accounts  Receivable 

Bills  Payable  . 

Cash  . i. . . 


*  1916 
$1,529,812 
60,930 
61,954 
125,000 
25,655 


1915 

$1,212,447 

60,930 

18,870 


53,351 


Total  Assets 


$1,678,351  $1,344,599 


Liabilities : 

Capital  Stock  . . 

Reserve  Depreciation  .  . 

Accounts  Payable  . 

Profit  and  Doss  Surplus 


$1,000,000 

232,773 

63,618 

256,960 


$1,000,000 

197,059 

19,946 

127,594 


Total  Liabilities  .  $1,678,351  $1,344,599 

I  / 

This  company  makes  the  most  favorable  showing  of  any 
of  the  pipe  lines,  its  earnings  for  the  past  year  being  greatly 
above  those  for  any  previous  year.  In  1915  the  company 
reported  a  deficit  after  paying  its  5  per  cent,  dividend,  but 
last  year’s  dividend  was  earned  almost  four  times  over.  The 
development  of  the  Irvine  field  of  Kentucky  _  has  been  re¬ 
sponsible  for  the  increase  in  Cumberland’s  profits.  During 
1916  the  company’s  gathering  line  business  increased  from 
397,148  barrels  to  1,144,750  barrels,  and  during  the  current 
year  the  company  expects  to  handle  about  2,000,000  barrels. 
No  early  increase  in  dividends  may  be  expected,  however,  as 
the  company  will  be  called  upon  to  increase  its  equipment  to 
keep  up  with  the  increasing  production  of  the  Kentucky 
fields.  The  book  value  of  the  stock  has  increased  to  $125.69 
a  share,  of  which  $20.99  represents  net  cash  assets. 

It  will  be  noticed  that  while  the  company  increased  its 
plant  investment  26  per  cent,  during  the  year,  its  traffic 
increased  nearly  200  per  cent,  and  its  earnings  428  per  cent. 

A  review  of  the  company’s  operations  since  the  dissolu¬ 
tion  shows  the  following: 


Cumberland  Pipe  Line  Company 


39 


Invested  Depreciation 


Earnings 

Kate 

in  Plant 

for  Year 

Surplus 

1916.  .  .  . 

. .  .  $179,366 

17,90% 

$317,365 

$35,674 

$256,960 

1915.  .  .  . 

3.20% 

25,789 

35,024 

127,594 

1914.  .  .  . 

31,688 

3.16% 

317 

22,128 

145,594 

1913.  .  .  . 

72,143 

7.20% 

20,453 

40,271 

163,907 

1912.  .  .  . 

88,982 

8.89% 

*99,636 

151,765 

NOTE — On  June  30,  1911,  the  surplus  was  $110,559 
♦Accrued  depreciation  to  December  31,  1912. 

Traffic — Traffic  statistics  for  the  past  five  years  follow : 


Buns  Deliveries  Tankage 

(Barrels)  (Barrels)  (Barrels) 

1912  .  475,546  562,112  85,107 

1913  .  522,552  518,027  129,225 

1914  .  479,608  405,711  172,375 

1915  .  407,078  403,232  169,25# 

1916  .  1,144,750  1,041,301  197,557 

1817  (3  months) .  457,792  444,700  222,802 


Directors- — Forrest  M.  Towl.  New  York;  John  Bahan  and 
P.  H.  Leonard,  Winchester,  Ky. ;  H.  B.  Robinson, 
Oil  City,  Pa.;  Joseph  Geiger,  Monticello,  Ky. 

Officers — President — Forrest  M.  Towl. 

Vice-President  and  General  Mgr. — John  Bahan. 
Vice-President — H.  B.  Robinson. 

Secretary  and  Treasurer — E.  R.  Shepard. 

Ass’t  Sec’y  and  Treas. — C.  A.  McLouth. 
Assistant  Treasurer — J.  H.  Baker. 

Transfer  Office — No.  210  Seneca  Street,  Oil  City,  Pennau 


THE  EUREKA  PIPE  LINE  COMPANY 

The  Eureka  Pipe  Line  Company  was  incorporated  in  1890 
under  the  laws  of  West  Virginia. 

Capital  Stock — The  capital  stock  is  $5,000,000.  Par  value, 

$100. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared,  payable  as  follows:  1912.  30  per  cent.;  1913,  40  per 
cent.;  1914,  32  per  cent.;  1915,  24  per  cent.;  1916,  24  per 
cent.;  1917,  February  1,  6  per  cent.;  May  1,  6  per  cent. 

Properties — The  company  owns  and  operates  4.216  miles 
of  pipe  line,  with  9  trunk  line  pumping  stations  and  84  local 
pumping  stations,  and  owns  2,798,000  barrels  of  iron  tankage. 

The  pipe  lines  reach  nearly  all  of  the  wells  in  West  Vir¬ 
ginia.  In  addition  to  its  lines  gathering  oil  from  these  wells, 
the  trunk  lines  of  the  company  are  engaged  in  interstate 
handling  of  oil. 

The  trunk  lines  extend  from  Clifford  on  Tug  Fork,  Eureka 
and  Sisterville  via  Branden  and  Downs  to  Morgantown; 
from  Sisterville  to  Littleton;  from  Sand  Fork  via  Ten  Mile 
and  Downs  to  Morgantown;  from  Downs  to  Minor  and  Downs 
to  Dolls  Run. 

From  Morgantown  to  State  Line  via  Dolls  Run  there  are 
two  6-inch  and  two  8-inch  trunk  lines  connecting  with  the 
South  West  Pennsylvania  Pipe  Lines. 

From  Morgantown  northeast  to  connect  with  the  lines  of 
the  Southern  Pipe  Line  Company  at  Pennsylvania  State  Line 
there  are  seven  6-inch  lines. 

The  company  receives  Kentucky  oil  from  the  Cumber¬ 
land  Pipe  Line  at  Clifford. 


41 


The  Eureka  Pipe  Line  Company 


The  financial  statement  of  this  company  for  1916,  com¬ 
pared  with  that  of  the  previous  year,  is  as  follows: — 


1916  1915 

•Net  Profits  .  $1,322,069  $992,247 

Dividends  .  1,200,004  1,200,004 


Surplus  .  $122,065  f$207,758 


•Equal  to  26.44  per  cent,  on  $5,000,000  capital  stock 
against  19.84  per  cent,  in  1915. 
tOeficit. 


Assets : 

P4  ant  . . 

Other  Investments  . 

Accounts  Receivable  . 

Cash  . 

Tnta.1  Assets  . 

liabilities: 

Capital  Stock . 

Reserve  Depreciations . 

Accounts  Payable . 

Oil  Purch.  and  Sale  Contingent 
Profit  and  Loss . 


1916 

$9,674,285 

1,124,412 

693,934 

446,550 


$11,939,182 


$5,000,000 

1,738,189 

309,306 

337,800 

4,553,887 


1915 

$9,604,211 

829,313 

138,911 

583,499 


$11,155,933 


$5,000,000 

1,467,202 

256,909 


4,431,822 


Total  Liabilities 


$11,939,182  $11,155,933 


The  company’s  report  shows  a  considerable  increase  in 
earnings  over  1915  and  a  balance  over  its  24  per  cent,  divi¬ 
dend  requirements  against  a  deficit  in  the  previous  year. 
The  company  has  profited  by  increased  deliveries  from  the 
Cumberland  Pipe  Line  Company,  as  practically  all  oil  from 
the  Kentucky  fields  is  delivered  by  the  Eureka  to  the  At¬ 
lantic  Refining  Company  at  Philadelphia.  The  company’s 
gathering  line  business  showed  a  decline  of  212,390  barrels, 
which  was  offset  by  a  25  per  cent,  increase  in  Trunk  Line 
business.  The  book  value  of  the  stock  has  increased  to  $191, 
of  which  $39.11  represents  net  cash  assets. 

Reviewing  the  operations  of  the  company  for  the  last  five 
▼  e*n#  furnishes  the  following  comparison: 

Invested  in  Depreci- 


Earnings 

Rate 

Property 

ation 

Surplus 

1*16.  .  .  . 

.  .  $1,322,069 

26.44% 

$70,074 

$270,987 

$4,553,887 

1916. . . . 

992,247 

19.84% 

5,784 

271,986 

4,431,822 

1914. . . . 

1,416,134 

28.32% 

88,116 

169,831 

4,639,579 

1913.  .  .  . 

1,954,305 

39.08% 

152,028 

312,458 

4,823,442 

1  9! 2.  .  .  . 

2,618,389 

52,37% 

*712,927 

4,869,127 

•Accrued  depreciation  to  December  31,  1912. 


Traffic — Runs,  receipts  and  deliveries  of  the  line  since  the 
dissolution  are  as  follows: 


Runs  Other  Receipts  Deliveries 

19 If  (3  mos. ) .  1,804,270  3,151,510  4,391,151 

1916 .  7,737,588  11,064,700  19,992,288 

1916 .  7,949,978  8,450,178  16,191,510 

191* .  8,996,767  8,709,041  16,285,753 

1913 .  10,764,342  11,245,908  21,948,350 

1918 .  11,499,665  13,394,733  *4,656,482 


Officers — President — Forrest  M.  Towl,  New  York  City. 
Vice-President  and  General  Manager — 

H.  L.  Scrafford,  Pittsburgh,  Pa. 


Galena- Signal  Oil  Company 


41 


Vice-President  and  General  Superintendent — 

W.  J.  Alexander,  Parkersburg,  W.  Va, 
Secretary  and  Treasurer — E.  R.  Shepard. 

Asst.  Sec.  and  Treas. — C.  A.  McLouth  and  E.  W. 
Ziegler. 

Directors — Forrest  M.  Towl,  H.  L.  Scrafford,  W.  J.  Alex¬ 
ander,  J.  Cochrane,  A.  D.  McVey. 

Transfer  Office — 210  Seneca  Street,  Oil  City,  Pennsylvania. 


GALENA-SIGNAL  OIL  COMPANY 

The  Galena-Signal  Oil  Company  was  incorporated  in  1901 
under  the  laws  of  Pennsylvania  as  a  consolidation  of  the 
Galena  Oil  Works  and  the  Signal  Oil  Company.  The  Galena 
Oil  Company  was  organized  as  early  as  1869  by  General 
Charles  Miller,  who  purchased  certain  patents  for  making 
lubricating  oils.  These  oils  had  immediate  success  through 
the  striking  demonstrations  of  their  results  on  many  railroads 
in  the  United  States. 

By  1879  the  use  of  Galena  Oils  had  increased  to  such  an 
extent  that  General  Miller  and  his  partners  controlled  the 
trade  in  lubricating  oils  with  railroads  operating  about  40  per 
cent,  of  the  railway  mileage  in  the  United  States. 

Capital  Stock — The  Capital  Stock  consists  of  $12,000,000 
common  and  $2,000,000  preferred  stock.  Par  value,  $100. 

The  Common  Stock  issue  was  raised  from  $8,000,000  to 
$12,000,000  at  a  special  meeting  of  the  stockholders  on  March 
19,  1913. 

Dividends — Dividends  at  the  rate  of  8  per  cent,  per  annum 
have  been  paid  to  date  on  the  preferred  stock.  Since  the  dis¬ 
solution,  dividends  on  the  common  stock  have*  been  paid  as 
follows:  1912,  16  per  cent.;  1913,  4  per  cent,  on  old  capitali¬ 
zation  and  50  per  cent,  stock  dividend,  10  per  cent,  on  new 
capitalization;  1914,  12  per  cent.;  1915,  12  per  cent.;  1916, 
12  per  cent.;  1917,  March  31,  3  per  cent.  (Q). 

Properties — This  company  is  engaged  in  the  manufacture 
of  lubricating  and  signal  oils,  and  has  an  extensive  plant  at 
Franklin,  Pa.  It  also  owns  and  operates  plants  at  Toronto, 
Canada;  Parkersburg,  W.  Va. ;  Boston,  Mass.;  Rouen,  France, 
and  Elizabeth,  N.  J.  The  latter  plant  supplies  the  export 
trade.  Extensive  additions  to  this  plant  are  now  under  way 
on  125,000  square  feet  of  additional  land  which  the  com¬ 
pany  has  acquired  recently.  As  a  producer  of  lubricating  oils, 
the  company  has  an  extensive  and  profitable  trade  with  rail¬ 
roads  throughout  the  world  and  manufactures  one  hundred 
and  thirty  different  brands  of  oil  for  special  purposes  of 
railroads. 

The  oils  of  the  Galena-Signal  Oil  Company  are  the  stand¬ 
ard  of  lubrication,  not  only  among  American  railways  in 
general,  but  upon  nearly  all  of  the  railways  of  Canada,  South 
America  and  France,  with  an  increasing  demand  from  other 
foreign  countries.  The  company’s  yearly  output  is  more  thaa 
800,000  barrels  of  lubricants,  from  which  it  supplies  over 
90  per  cent,  of  the  railroads  of  this  country;  75  per  cent,  of 
the  total  street  car  mileage  of  this  country;  70  per  cent,  of 
the  railroads  of  South  America,  and  a  goodly  percentage  of 
the  street  railroads.  The  company  recently  has  renewed  for 
ten  years  on  a  more  profitable  basis,  some  of  its  important 
contracts  with  government-owned  French  railroads. 

The  Company  markets  its  oils  to  the  railroads  under  a 
contract  system,  guaranteeing  a  certain  mileage  performance 
of  equipment  with  due  efficiency,  per  gallon  of  oil  consumed. 
This  manner  of  purchasing  oils  has  proven  a  great  saving  in 


42 


Galena-Signal  Oil  Company 


the  operating  expenses  of  the  railroads  everywhere,  and  has 
also  resulted  in  building  up  an  enormous  business  for  the 
Galena-Signal  Oil  Company. 

In  order  to  keep  in  touch  with  the  individual  requirements 
of  the  various  railroads,  the  company  maintains  a  corps  of 
expert  mechanics,  who  study  the  requirements  and  differing 
conditions  to  be  met  with  in  actual  service. 

With  the  enormous  development  of  the  automobile  in¬ 
dustry,  a  demand  has  arisen  for  special  brands  of  automobile 
lubricants,  which  this  company  has  met  with  such  success 
that  the  General  Motors  Company  and  other  large  organiz¬ 
ations  depepd  upon  it  for  all  lubricants  and  greases  in  getting 
their  cars  out  of  the  factory.  This  new  line  has  necessitated 
the  purchase  of  23  acres  adjoining  the  company’s  plant  at 
Franklin,  where  a  compounding  plant  has  been  erected  for 
the  manufacture  of  motor  oils. 

The  company  also  has  found  it  necessary  to  begin  the 
erection  of  a  new  refinery  on  the  Gulf  Coast  near  Houston, 
Texas,  for  the  manufacture  of  lubricants  to  supply  its  rapid¬ 
ly  expanding  export  business.  A  corporation  known  as  the 
Petroleum  Refining  Company,  Ltd.,  has  been  formed  with  a 
eapital  of  $1,500,000  in  which  the  Galena  Company  owns  a 
majority  interest,  the  remainder  being  held  by  J.  S.  Cullina* 
and  associates.  The  refinery  now  under  construction  will  have 
an  output  of  15,000  barrels  of  lubricants  daily.  Dr.  E.  R. 
Lederer,  formerly  chief  chemist  of  the  Atlantic  Refining 
Company’s  Eclipse  Works  at  Franklin,  Pa.,  will  hare  charge 
of  the  new  refinery. 

The  Galena  Signal  Oil  Company’s  balance  sheet  for  year 
ended  December  31,  191G,  compares  as  follows: — 


Assets : 

1916 

1915 

Cash  . 

.  $1,293,165 

$2,186,815 

1,033,097 

3,569,065 

1,605,125 

1,007,084 

6,950,000 

Securities  . 

.  1,002,206 

Accounts  Receivable . 

Inventory  . 

Property  and  Plant . 

Good  Will,  etc . 

.  4,618,251 

.  1,855,207 

.  1,218,538 

Total  Assets . 

.  $16,937,367 

$16,351,188 

Liabilities: 

Preferred  Stock . 

Common  Stock . 

Accounts  Payable . 

Contingency  . 

Surplus  . 

.  $2,000,00* 

.  12,000,000 

.  902,861 

.  873,694 

$2,000,000 

12,000,000 

779,314 

793,968 

777,905 

Total  Liabilities . 

.  $16,937,367 

$16,351,188 

t 


Earnings  of  $1,804,682  are  indicated  after  depreciation  in 
as  much  as  Surplus  increased  $95,789  and  Contingent  Fund 
increased  $108,893  after  payment  of  $1,600,000  in  dividends. 
The  company  furnishes  no  earnings  statement,  nor  any  clue 
to  its  depreciation.  It  is  evident,  however,  that  as  usual  its 
dividends  have  been  earned  by  a  safe  margin.  The  com¬ 
pany’s  working  capital  at  the  close  of  the  year  was  $7,608,017 
compared  with  $7,614,788  at  the  close  of  the  previous  year. 

Reviewing  the  financial  statements  of  the  company  for  the 
five-year  period  furnishes  the  following  comparison*: 


•aleaia- Signal  Oil  Company 


43 


Cash 

Dividends 
1916 .  $1,600,000 


1915 

1914 . 

1913 . 

1912 . 

*After 

tAfter 

mon 


Added  to 
Plant  After 


1,600,000 

1,600,000 

1,680,000 

1,440,000 


Depreciation 
$211,454 
152,989 
63,673 
345,000 
1,339,310 


Additions  to 
Contingent 


Funds  Surplus 

$108,893  $873,694 

793,768  777,905 

.  *570,094 

.  f926,015 

.  4,882,007 

charging  off  $338,448  for  losses  accrued  prior  to  1914. 
the  distribution  of  a  $4,000,000  dividend  in  corn- 
stock.  . 


In  the  five  years  since  the  dissolution,  the  company  has 
paid  $800,000  to  its  preferred  shareholders  and  $7,920,000  i* 
cash  and  $4,000,000  in  stock  to  its  common  stockholders. 
These  figures  in  connection  with  the  $2,112,426  added  to  plant 
account,  after  depreciation,  and  the  $902,861  set  aside  for 
contingencies,  would  indicate  average  earnings  of  better  thaw 
18  per  cent,  for  the  common  stock  since  the  dissolution.  This 
compares  with  average  earnings  of  24  per  cent,  on  $8,000,000 
oapital  in  the  five  year  period  1902-1906.  Net  assets  of  the 
company  on  December  31,  1906,  were  $4,685,569  against  net 
assets  of  $14,873,694  on  December  31,  1916,  showing  a  growth 
•f  $10,18S,125  in  the  last  ten  years. 

At  the  annual  meeting  in  February,  1917,  S.  A.  Mageatk 
retired  from  the  presidency  to  devote  his  entire  time  to  the 
•ompany’s  foreign  marketing  business.  General  Charles 
Miller,  the  founder  of  the  business,  has  resumed  the  effice  ef 
president,  which  he  held  formerly  for  many  years. 

Officers — President — General  Charles  Miller. 

Vice-President — C.  C.  Steinbrenner. 

Vice-President — E.  H.  Baker. 

Secretary — J.  French  Miller. 

Assistant  Secretary — G.  F.  Proudfoot. 

Treasurer — E.  H.  Sibley. 

Directors — General  Charles  Miller,  Chairman;  S.  A.  Me- 
geath,  C.  C.  Steinbrenner,  E.  H.  Baker,  H.  M.  Tilford,  E.  H. 
Sibley,  J.  C.  Sibley,  George  C.  Miller,  J.  French  Miller,  D.  D. 
Mallory  and  LeRoy  G.  Miller. 

Transfer  Office — Liberty  and  South  Park  Streets,  Franklin, 
Penna.  , 


ILLINOIS  PIPE  LINE  COMPANY 

The  Illinois  Pipe  Line  Company  was  incorporated  in  De¬ 
cember,  1914,  under  the  laws  of  Ohio,  to  take  over  the  Ohio 
Oil  Company’s  trunk  and  gathering  pipe  line  systems,  with 
the  equipment  belonging  thereto,  in  the  States  of  Illinois, 
Indiana,  Ohio  and  Pennsylvania. 

Caoitaliznti«« — $20, 01#, 900.  Par  value,  $100. 

The  200,000  shares  of  stock  were  distributed  pro  rata 
among  the  holders  of  the  600,000  shares  of  the  Ohio  Oil 
Company  on  February  1,  1915.  The  company  began  operation 
•  a  January  2,  1915. 

Dividend — An  initial  dividend  of  5  per  cent,  was  paid  July 
20,  1915,  out  of  the  first  half  year’s  earnings,  followed  by  a 
dividend  of  15  per  cent,  paid  on  January  15,  1916,  to  stock  of 
record  December  28,  1915,  making  20  per  cent,  out  of  1915 
earnings;  1916,  June  24,  12  per  cent.;  December  19,  12  per 
cent. 

Business — The  company  acts  as  a  common  carrier  of  crude 
»M  in  the  States  of  Illinois,  Indiana,  Ohio  and  Pennsylvania. 


44 


Illinois  Pipe  Line  Company 


in  which  its  extensive  systems  of  gathering  and  trunk  lines 
are  located-  The  company  also  operates  twe  short  lines  In 

the  new  Wyoming  fields,  and  has  a  third  under  construction. 

Properties — The  company’s  gathering  lines  carry  more 
than  four-fifths  of  the  crude  oil  produced  in  the  Illinois  field. 
Its  main  trunk  line  extends  for  nearly  1,000  miles  from 
Wood  River,  Ill.,  on  the  banks  of  the  Mississippi  River  to 
Centerbridge,  Pa.,  joining  a  trunk  line  of  the  Prairie  Pipe 
Line  in  the  west  with  the  pipe  line  of  the  Standard  Oil  Com¬ 
pany  of  New  Jersey  in  the  East.  Another  trunk  line  runs 
from  Martinsville,  Ill.,  to  Preble,  Ind.,  joining  there  the 
Indiana  Pipe  Line.  A  third  trunk  line  runs  to  Lima,  Ohio, 
and  effects  a  junction  with  the  Buckeye  system. 

It  is  apparent  that  the  company’s  trunk  line  system  fur¬ 
nishes  a  direct  connection  between  the  Mid-Continent  oil 
fielu  and  the  Atlantic  seaboard  refineries  and  by  reason  of 
this  is  assured  of  heavy  traffic,  irrespective  of  production 
east  of  Mississippi  River. 

The  company  has  filed  with  the  Public  Utilities  Commis¬ 
sion  of  Ohio  an  inventory  of  the  property  purchased  from 
the  Ohio  Oil  Company  as  follows: 


Illinois 

Fifty  tanks  .  $500,000 

Eight-inch  lines  .  1,522,000 

Twelve-inch  lines  .  150,000 

Three  stations  .  525,000 

Eleven  stations  .  .  .^ .  550,000 

Coal,  office  furniture,  etc .  175,000 

Telegraph  lines  .  82,000 

Gathering  lines  and  pumps .  4,310,000 

Ohio 

Eight-inch  lines  .  $3,679,000 

Twelve-inch  lines  . 1,155,000 

Four  stations  .  700,000 

Sixty-three  tanks  .  630,000 

Gathering  and  Wooster  lines .  30,000 

Telegraph  and  equipment .  78,500 

Furniture  .  105,000 


Indiana 

Eight-ineh  lines  .  $2,737,000 

Twelve-inch  lines  .  1,388,000 

Fifteen  tanks  .  150,000 

Fixtures,  etc .  120.000 

Four  stations  .  700,000 

Telegraph  lines  .  92,606 

Gathering  lines  .  169,500 

Pennsylvania 

Coal  and  supply  lines  for  operating.  $250,000 

Cash  .  200,000 


Total  four  States .  $19, 996,600 


Balance  Sheet — The  company’s  financial  statement  for 
191S  compares  as  follows: 

Assets:  1916  1915 

Pipe  Line  Property .  $18,618,150  $18,905,253.98 

Cash  and  Accounts  Receivable .  2,037,482  4,461,301.07 

Material  and  Supplies .  176,061  149,987.26- 

\  - - 


T®tal  Assets 


$20,831,693  $23,516,542.31 


Illinois  Pipe  Line  Company 


45 


Liabilities: 

Capital  Stock  .  $20,000,000 

Accounts  Payable  .  466,451 

Unmatured  Dividend  Declared .  . 

Surplus  . 365,242 


$20,000,000,00 

181,715.25 

3,000,000.00 

334,827.06 


Total  Liabilities .  $20,831,693  $23,516,542.31 

Earnings  of  25.5  per  cent,  are  indicated  against  21.6  per 
cent,  in  1915.  Before  these  earnings  were  computed  it  is 
evident  that  the  company  had  written  off  heavy  depreciation, 
as  in  spite  of  its  large  investment  during  1916  in  the  con¬ 
struction  of  pipe  lines,  pumping  station  and  tankage  in  the 
new  Wyoming  fields,  the  company’s  plant  account  shows  a 
reduction  of  nearly  $300,000. 

The  company  is  now  constructing  an  18-mile  line  from  the 
newly  developed  Big  Muddy  Field  to  Casper,  Wyo.,  and  is 
also  extending  its  present  line  from  the  Grass  Creek  Field 
to  Chatham,  from  that  point  to  Casper. 

As  the  production  from  the  Wyoming  pools  served  by  the 
company’s  lines  is  now  around  15,000  barrels  daily  and  will 
be  double  that  figure  before  the  close  of  1917,  the  income 
from  its  Wyoming  business  will  be  noticed  in  the  company’s 
earnings  hereafter. 

Traffic — The  traffic  over  these  lines  for  the  last  five  years 
has  been  as  follows: — 


Runs  Shipments  Deliveries 

(Barrels)  (Barrels)  (Barrels) 

1917  (3  months) .  2,871,020  .  . 

1916 .  13,578,141  1,062,724  27,804,519 

1915 .  14,045,285  2,143,872  26,916,123 

1914  .  17,088,736  9,304,5«8  5,685,640 

1913  .  17,933,528  13,081,049  11,240,580 

1912  .  23,243,028  16,127,944  14.956,431 


Officers — President,  J.  Rooy  Penn,  Jr. 

Vice-President,  Ward  A.  Miller. 

Treasurer,  J.  E.  Herr. 

Secretary,  W.  E.  Badger. 

Directors — J.  Roby  Penn,  Jr.,  Daniel  Roach,  George  P. 

Jones,  and  W.  E.  Badger,  Findlay,  O.,  Ward 
A.  Miller,  Lima,  O.,  and  M.  W.  Porter. 

Transfer  Office — Findlay,  Ohio. 


INDIANA  PIPE  LINE  COMPANY 

The  Indiana  Pipe  Line  Company  was  incorporated  March 
19,  1891,  under  the  laws  of  Indiana. 

Capital  Stock — The  capital  stock  is  $5,000,000.  Par  v’lue. 
$50. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  payable  as  follows:  1912,  20  per  cent.;  1913,  32  per 
cent.;  1914,  27  per  cent.;  1915,  16  per  cent.;  1916,  16  per 
cent.;  1917,  February  15,  4  per  cent,  and  2  per  cent,  extra; 
May  15,  4  per  cent. 

Properties — The  Indiana  pipe  lines  comprise  an  important 
link  in  an  extensive  system,  consisting  of  the  properties  of 
three  pipe  line  companies,  serving  the  Lima-Indiana  oil 
fields.  The  company  owns  complete  gathering  lines  and  col¬ 
lects  direct  from  the  wells  all  oil  produced  in  the  State  of 
Indiana.  Its  importance,  however,  depends  upon  its  trunk 
lines,  which  carry  Mid-Continent  oil  destined  for  Canada  or 
that  goes  to  the  Atlantic  seaboard  on  tlffe  Northern  route. 


46 


Indiana  Pipe  Line  Company 


The  company’s  main  trunk  line  extends  from  Whiting, 
Indiana,  to  the  Ohio  State  Line,  via  Kanakee,  Laketon  and 
Preble,  Indiana,  a  distance  of  about  127.5  miles,  the  system 
consisting  of  two  8-inch  lines  and  one  8-inch  loop  to  each  of 
the  four  divisions. 

A  majority  of  the  collecting  lines  center  at  Montpelier, 
Indiana,  from  which  point  they  extend  to  Broad  Ripple,  near 
Indianapolis,  a  distance  of  55  miles;  to  Smithfleld,  27  miles; 
to  Leyton,  13  miles;  to  Mount  Pleasant,  26  miles;  to  Preble, 
25  miles.  Other  branches  of  the  system  extend  from  Baker 
to  Laketon,  Indiana,  19  miles;  from  Grant,  Indiana,  to  Main 
Line,  16  miles;  and  fron?  Leyton,  Indiana,  to  Adgate,  Ohio, 
61  miles. 

The  most  important  branch  line  projects  from  Preble  to 
Montpelier,  where  connections  are  made  with  the  lines  of  the 
Ohio  Oil  Company. 

The  company  has  four  large  main  line  pump  stations, 
between  Griffith  and  Preble,  and  numerous  branch  and  field 
lines  stations.  It  has  steel  tankage  capacity  of  1,500,000 
barrels  in  the  field,  and  at  Griffith,  Whiting,  Preble  and 
Montpelier.  At  Whiting  the  company  supplies  the  crude  oil 
for  Standard  Oil  Company  Indiana’s  main  refinery. 

This  pipe  line  system  was  constructed  in  1889  and  doubt¬ 
less  the  depreciation  during  its  service  has  been  considerable. 
In  1911,  the  property,  including  the  pipe  line  and  telegraph 
equipment  only,  was  assessed  for  taxation  at  a  valuation  of 
$5,130,000. 

It  is  clear  that  the  Company  must  depend  largely  upon 
the  trunk  line  business  for  the  greater  portion  of  it*  future 
earnings,  owing  to  the  permanent  decline  in  production  in 
the  Indiana  fields.  It  1906,  that  territory  produced  over 
7,000,000  barrels  of  crude  oil,  while  in  1915  it  yielded  only 
875,758  marketed  barrels. 

By  virtue  of  their  location,  the  Indiana  pipe  lines  will 
hold  the  traffic  from  the  mid-contin6nt  field,  which  should 
increase  substantially  during  the  next  few  years,  on  account 
of  the  greater  demands  upon  the  newer  fields  of  that  western 
section  of  the  country. 


This  company’s  report  for  1916  compares  as  follows; — 


1916  1915 

Net  Income .  $1,300,836  $1,271,416 

Dividends  .  900,000  800,000 


Surplus  . 

Assets: 

Pipe  Line  Plant . 

Materials  and  Supplies . 

Cash,  other  Inv.  &  Accts.  Rec 


$400,836 

1916 

$4,773,077 

36,768 

4,838,319 


$471,416 

1915 

$4,914,190 

39,441 

4,348,243 


Total  Assets .  $9,648,064  $9,301,874 

Liabilities : 

Capital  Stock .  $5,000,000  $5,000,000 

Accounts  Payable  .  479,553  718,435 

Reserve  Account  for  Depreciation...  1,686,979  1,507,200 

Fire  Insurance  Reserve . . .  4,457  . 

Profit  and  Loss  Surplus .  2,477,075  2,076,239 


Total  Liabilities 


$9,648,064  $9,301,874 


Net  earnings  were  at  the  rate  of  26  per  cent,  against 
25.43  per  cent,  in  1915  or  25.35  per  cent,  in  1914.  The  com¬ 
pany  carries  its  first  quarter  dividend  for  1917  paid  on 
February  15  out  or  earnings  for  the  last  quartor  of  1916, 


Nfctioaal  Transit  Compaar 


47 


which  accounts  for  the  extra  $100,000.  The  book  t»Ih«  of 
the  stock  has  increased  to  $74.77  a  share,  of  whiok  $44.58 
represents  net  cash  assets.  . 


Deliveries — Statistics  of  the  company’s  traffic  since  the 


dissolution  are  as  follows: 


Other  Receipts  Runs 
(Barrels)  (Barrels) 
Total  12  months,  1912.  31,491,359  739,922 

Total  12  months,  1913.  32,345,486  625,103 

Total  12  months,  1914.  25,121,350  493,639 

Total  12  months,  1915.  2*373, #44  414, 7#o 

Total  12  months,  1916.  34,842,759  580,698 

Total  3  months,  1917.  8,303,751  57,785 


,  A  review  of  the  company’s  operations  since  tho 
shows  the  following: 

Additions  Depreci- 


Net  Profits 

Rate 

to  Plant 

ation 

1916.  .  . 

.  .  .  $1,300,836 

26.00% 

$38,666 

$179,779 

1815.  .  . 

.  .  .  1,271,416 

25.43% 

115,991 

173,265 

1914.  .  . 

1,268,792 

25.30% 

61,596 

345,870 

1913.  .  . 

.  .  .  1,770,972 

35.00% 

26,432 

418,154 

1912.  .  . 

.  .  .  1,976,383 

39.50% 

569,911 

s 

Deliveries 

(Barrels) 

32,155,776 

32,894,071 

25,258,059 

29,771343 

34,697,420 

8,377,845 

diAsolatioa 


Ssrplns 

*2,477.075 

2,076,239 

1,604332 

1,486,031 

1,315,058 


On  December  31,  1906,  the  company’s  net  asset*  were  $4,- 
365,744  against  $7,481,532  on  December  31,  1916,  showing  a 
growth  of  $3,115,788  over  the  ten-year  period. 

Directors — D.  S.  Bushnell,  New  York;  A.  C.  Beeson,  D. 
M.  Collett,  Walter  C.  Shields,  all  of  Huntington,  Ind. ;  and 
George  E.  Pifer,  Montpelier,  Ind. 

Officers — President — D.  S.  Bushnell. 

Vice-President — A.  C.  Beeson. 

Secretary — George  Chesebro. 

Treasurer — W.  A.  Harris. 

Transfer  Office — No.  26  Broadway,  New  York  City. 

Annual  Meeting — Third  Thursday  in  March. 


NATIONAL  TRANSIT  COMPANY 

The  National  Transit  Company  was  incorporated  in  1861 
under  the  laws  of  Pennsylvania.  It  was  formerly  a  holding 
company  for  pipe  line  stocks,  subsequently  turned  over  to 
the  Standard  Oil  Company  of  New  Jersey. 

Capital  Stock — The  capital  stock  was  formerly  $25,455,150, 
with  shares  at  a  par  value  of  $50.  In  1911,  however,  the 
capital  stock  was  reduced  to  $12,727,575,  with  par  value  of 
shares  at  $25. 

A  further  reduction  of  the  capital  to  $6,362,500  by  the 
retirement  of  103  shares  and  the  distribution  of  the  com¬ 
pany’s  surplus  by  a  cash  dividend  of  $12.50  to  each  share,  was 
made  in  April,  1916.  The  new  share  have  a  par  T&lue  of 
$12.50  and  all  fractions  have  been  eliminated. 

The  company  also  announce  the  segregation  of  its  ma¬ 
chinery  business  from  its  pipe  line  operations  and  to  that 
end  has  incorporated  the  National  Transit  Pump  and  Ma¬ 
chine  Company,  under  Pennsylvania  laws,  with  a  capital  of 
$2,545,000.  Par  value  $25.  All  the  stock  with  the  exception 
of  ten  qualifying  shares  is  held  as  an  asset  by  th*  National 
Transit  Company. 

The  object  of  this  segregation  was  mainly  to  take  ad¬ 
vantage  of  the  exemptions  from  taxation  on  capital  investea 
ia  manufacturing  in  the  State  of  Pennsylvania  and  also  to 


National  Transit  Company 


U 


keep  its  pipe  line  accounting,  which  is  subject  to  the  scrutiny 
of  the  Interstate  Commerce  fcommission,  fx*ee  from  other 
sources  of  revenue.  • 

The  company’s  industrial  plant,  which  now  operates 
as  a  separate  unit  has  been  greatly  increased  in  the  last 
year  and/  now  represents  an  investment  of  $2,500,000.  It 
manufactures  gas  engines  and  heavy  oil  engines,  for  drilling 
and  pumping  oil  wells,  pumping  machinery  for  pipe  line 
systems  and  waterworks  plants;-  pipe  line  tools  and  other  oil 
field  accessories. 

An  official  statement  to  stockholders  concerning  the  re¬ 
duction  in  capital,  says  in  part: — 

“The  revenues  of  the  company  have  been  largely  de¬ 
creased  by  reason  of  the  reduction  of  rates  for  transporting 
oil,  which  became  effective  in  August,  1914.  In  the  judgment 
of  the  Board  of  Directors  the  present  capitalization  of  the 
National  Transit  Company  is  !)•  excess  of  the  amount  re¬ 
quired  for  the  business  that  may  be  done  by  the  company  at 
this  time. 

“There  is  no  prospect  of  expansion  of  its  business  through 
development  of  new  fields  of  production  within  the  territory 
where  it  operates;  therefore,  it  is  thought  well  to  convert 
such  of  its  assets  as  may  be  necessary  for  the  purpose  into 
cash,  and  liquidate  the  stock  of  the  company  to  the  extent 
of  50  per  cent.,  making  the  par  value  of  the  shares  $12.50, 
instead  of  $25;  and  the  total  amount  of  capitalization  $6,- 
362,500.  This  amount  is  just  about  equal  to  the  present  pipe 
line  investment,  less  depreciation.” 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  as  follows:  1912,  12  per  cent.;  1913,  12  per  cent.;  1914. 
12  per  cent.;  1915,  8  per  cent.;  1916,  April  1,  50  per  cent. 
($12.50  a  share);  December  15,  4  per  cent,  (initial  dividend 
ok  reduced  capitalization). 

Properties — Owns  about  1,300  miles  of  pipe  line  in  the 
State  of  Pennsylvania,  of  which  555  miles  are  trunk  lines 
and  745  miles  gathering  lines.  The  trunk  lines  extend  from 
Nedsky,  Allegheny  County,  where  connection  is  made  with 
three  branches  of  the  Southwest  Pennsylvania  Pipe  Dine 
Company,  and  extend  in  a  northeasterly  direction  to  the  New 
York  State  line  near  Rixford,  where  connection  is  made  with 
the  New  York  Transit  Company.  Those  lines  aggregate  205 
miles.  The  eastern  lines  start  at  Colegrove,  where  the  oil 
is  received  from  the  Northern  Pipe  Dine,  and  extend  from 
Milway,  a  distance  of  175  miles.  From  Mllway  three  lines 
branch  out,  one  extending  to  Fawn  Grove,  35  miles;  one  to 
Atlantic  Refining,  Point  Breeze,  70  miles;  one  to  Centerbridge, 
70  miles.  The  eastern  lines  aggregate  about  350  miles.  The 
gathering  lines  are  located  in  western  Pennsylvania,  and 
carry  about  twelve  per  cent,  of  the  total  traffic.  The  bulk 
of  the  Company’s  traffic  is  long  haul. 

The  source  of  the  Company’s  local  traffic  is  the  Pennsyl¬ 
vania  oil  region,  from  which  it  supplies  refineries  at  Olean, 
Pittsburgh  and  Franklin.  It  receives  mid-continent  oil  at 
the  Pennsylvania  border  from  the  Buckeye  Pipe  Dine  and 
at  its  great  pumping  station  at  Bear  Creek.  Pa.,  acts  as  a 
transfer  agent,  switching  Pennsylvania  and  western  oil  over 
other  trunk  lines  to  the  Atlantic  seaboard. 

The  National  Transit  Pump  and  Machine  Company,  which 
formerly  confined  its  activities  to  pipe  line  machinery  has 
entered  the  the  general  commercial  field  and  has  established 
branch  offices  at  New  York,  Philadelphia,  Chicago  and  San 
Francisco.  The  company  has  doubled  the  capacity  of  its 
plfwtt,  as  well  as  its  mechanical  force,  and  now  employs  more 


National  Transit  Company 


49 


than  1,500  men  in  its  Oil  City  shops.  The  company’s  product 
includes  practically  every  device  connected  with  pumping 
powers,  from  pipe  line  tools  and  fittings  and  pumps  of  the 
smallest  powers  to  the  immense  machines  turned  out  for 
municipal  water  works,  mines,  office  buildings  and  factories, 
marine  service  or  pipe  line  pumping  stations. 

The  financial  statement  of  the  company  for  December  31, 
1916,  compares  as  follows: 


Net  Earnings  . 

1916 

12  Mos. 

1916 

6  Mos. 

1915 

$1,208,891 

$536,648 

$1,024,631 

Other  Disbursements . 

110 

110 

$954,281 

$536,538 

$6,424 

Comparative  Balance  Sheets 

Assets: 

Dec.  31/16 

June  30, '16 

Dec.  31/15 

Pipe  Dine  Plant . 

$8,160,823 

$8,173,054 

$8,170,439 

Other  Investments . 

3,590,135 

3,554,473 

8,162,507 

Cash  . 

333,852 

174,246 

534,280 

Accounts  Receivable . 

976,378 

988,689 

573,885 

Deferred  Assets . 

37,359 

38,018 

40,589 

Unadjusted  Debits . 

13,330 

51,480 

17,685 

Liabilities : 

$13,111,877 

$12,979,961 

$17,499,385 

Capital  Stock  . 

$6,362,500 

$6,362,500 

$12,727,575 

Current  Liabilities . 

730,225 

1,237,182 

123,988 

Accrued  P.  L.  Depreciation. . 

2,203,109 

1,990,173 

1,773,502 

Unadjusted  Credits . 

446,745 

438,551 

459,304 

Surplus  . 

3,369,298 

2,951,555 

2,415,017 

$13,111,877 

$12,979,981 

$17,499,385 

Net  earnings  were  at  the  rate  of  19  per  cent,  on  the  re¬ 
duced  capital,  against  8.05  per  cent,  on  the  old  capital  in  the 
previous  year.  The  actual  gain  in  earnings  was  $1S4,260, 
after  writing  off  $429,607  for  depreciation.  In  order  to  pay 
a  50  per  cent,  cash  dividend  to  reduce  its  capital,  the  com¬ 
pany  expended  $6,363,786  in  cash  and  after  reducing  its 
investment  account  by  more  than  $4,500,000,  it' borrowed  more 
than  a  million  dollars.  This  accounts  for  the  heavy  increase 
in  current  liabilities  in  the  June  30  statement.  'By  the  close 
of  the  year,  this  loan  had  been  reduced  by  more  than 
$500,000. 

Explaining  the  delay  in  declaring  dividends  after,  the 
adjustment  in  capitalization,  the  company  issued  a  state¬ 
ment  in  August  1916,  which  said  in  substance:  "The  reduc¬ 
tion  of  50  per  cent  in  our  capital  stock  was  to  be  accom¬ 
plished  by  the  sale  of  securities  which  the  company  owned. 
Some  of  these  securities  have  not  yet  been  sold,  as  in  the 
judgment  of  our  officers,  the  present  market  prices  on  the 
same  are  not  yet  up  to  their  real  value.  Also,  the  extensions 

of  plant  and  business  of  the  National  Transit  Pump  and 

Machine  Company  have  required  considerable  cash  capital. 
Because  of  these  facts  and  of  uncertain  business  conditions, 

the  probabilities  are  that  no  dividend  will  be  considered 

until  our  liabilities  have  been  materially  reduced." 

In  December,  1916,  a  dividend  of  4  per  cent.  (50  cents)  a 
share  was  paid,  but  no  dividend  has  been  declared  for  the 
first  quarter  of  1917,  indicating  that  the  company,1  while 
maintaining  its  1916  rate  of  earnings,  is  finding  it  necessary 
t*  conserve  its  cash  capital.  The  book  value  of  the  stock  in- 


Netv  York  Transit  Company 


S* 


•reased  during  1916  to  $19.11  on  $12.50  par  T«d«*  against 
$29.75  on  $25  par  value  at  the  close  of  1915. 

Reviewing  the  operations  of  the  company  gin**  th*  disso¬ 
lution  afford*  the  following  comparison: 


Net  Profits 

Rate 

Depreciation 

(Surplus 

1916.  .  . 

.  $1,208,391 

*19.00% 

$429,607 

$3,369,298 

1915. . . 

.  1,024,631 

8.05% 

fl,  773,502 

2,415,017 

1914.  .  . 

.  1,482,187 

11.60% 

2,408,592 

1913.  .  . 

.  2,315,556 

18.00% 

2,453,715 

1912. . . 

.  1,909,806 

15.00% 

1,665,466 

♦After  50  per  cent,  reduction  in  capital. 
^Accrued  depreciation  from  Dec.  81,  1611. 


Traffic — The  company’s  traffic  in  recent  years  is  set  forth 
as  follows: — 


Total  3  months. 
Total  12  months. 
Total  12  months, 
Total  12  months, 
Total  12  months, 
Total  12  months, 


Other  Receipts 
(Barrels) 
1917.  4,264,580 

1916.  18,962,962 

1915.  16,624,242 

1914.  16,451,353 

1913.  20,957,987 

1912.  21,502,500 


Runs 

(Barrels) 

627,310 

2,577,165 

2,685,137 

2,722,515 

2,707,525 

2,939,549 


Deliveries 

(Barrels) 

4,823,036 

21,702,953 

19,411,408 

18,956,586 

23,526,265 

24,687,692 


Officers — President — W.  V.  Miller. 

Vice-Pres’’^  -  * — R;  Huyck. 

Secrete*  ■:  R.  Ball. 

Assis  --  ->-tary — R.  C.  Lay. 

Trer  <  L-I.  Lay. 

Ass  :»  ■  casurer — D.  R.  Mackenzie. 

Transfer  Off;.,-  o.  206  Seneca  Street,  Oil  City,  Penna. 


NEW  YORK  TRANSIT  COMPANY 

The  New  York  Transit  Company  was  incorporated  Jan¬ 
uary  18,  1893,  under  the  laws  of  New  York  State.  The  Com¬ 
pany  purchased  from  the  National  Transit  Company,  at  the 
time  of  organization,  the  line  from  the  New  York  State  line 
through  Olean  to  the  New  Jersey  border  and  seaboard:  also 
the  line  from  Olean  northwest  to  Buffalo  and  gathering  line* 
in  New  Yofk  State. 

Capital  Stock — The  capital  stock  is  $5,000,000.  Par  value, 

$100. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows:  1912.  30  per  cent.:  1913,  40  per  cent.;  1914,  34 
per  cent.;  1915,  17  per  cent.;  1916,  16  per  cent.;  1917,  Jan¬ 
uary  15,  4  per  cent,  and  2  per  cent,  extra;  April  14,  4  per 
•ent. 

Properties — The  company  owns  and  operates  its  knain 
trunk  line,  about  300  miles  in  length,  extending  from  Olean,. 
N.  Y.,  to  Unionville,  N.  Y.,  where  oil  is  transferred  to  the 
private  pipe  line  of  the  Standard  Oil  Company  of  New  Jersey 
running  from  Unionville  to  Bayonne,  N.  J.  An  off-shoot  of 
this  line  at  Weehawken,  N.  J..  crosses  under  the  Hudeon 
River,  New  York  City  and  the  East  River  to  deliver  oil  to  the 
Standard  Oil  of  New  York  refineries  in  Long  Island  City  and 
Brooklyn.  These  lines  of  the  Standard  Oil  Company  of  New 
Jersey  were  purchased  late  in  1915  by  the  New  York  Transit 
Company  and  are  now  operated  as  part  of  its  system.  A 
branch  line,  56  miles  in  length,  runs  from  Olean,  N.  Y.,  to 


New  l'*rk  Transit  Company 


61 


Buffalo.  The  main*  trunk  line  is  a  triple  six-inch  line  capable 
of  handling  45,000  barrels  a  day. 

New  York  Transit  is  assured  a  heavy  and  profitable  traffic 
it  all  times,  since  it  supplies  large  refineries  of  the  Standard 
Dil  of  New  York  at  Long  Island  City  and  Buffalo,  and  the 
refinery  at  Bayonne  of  the  Standard  Oil  Company  of  New 
Jersey.  The  company  owns  about  one-third  of  the  tankage 
at  Olean,  N.  Y.,  which  is  one  of  the  largest  storage  points  in 
the  United  States. 

The  financial  statement  of  this  company  for  1916,  eom- 
pwred  with  that  of  the  previous  year,  is  as  follows: — 


1916  1915 

*Net  Profits  .  .$1,339,121  $813,129 

Mvidends  .  900,000  800,000 


Surplus  .  $439,121  $13,129 


♦Equal  to  26.78  per  cent  earned  on  $5,000,000  capital  stock 
against  16.27  per  cent,  in  1915. 

Assets:  1916  1915 

Plant  . $6,683,336  $6,661,113 

Material  and  Supplies .  17,189  54,570 

Oash,  other  Inv.  &  Accounts  Rec. .  .  .  5,684,896  5,116,762 


Total  Assets  .  $12,446,021  $11,832,445 

Liabilities: 

•apital  Stock . $5,000,000  $5,000,000 

Accounts  Payable .  669,341  456,908 

Reserve  Depreciation .  1,228,477  1,173,104 

Fire  Insurance .  10,247  . 

Profit  and  Doss . #. .  5,531,950  5,202,434 


Total  .  $12,446,021  $11,832,445 


This  company’s  earnings  during  1916  were  favorably  af¬ 
fected  by  the  addition  to  the  company’s  system  of  the  pipe 
lines  acquired  from  the  Standard  Oil  Company  of  New  Jer¬ 
sey  laTte  in  1915.  1916  profits  were  encouraging  enough  for 

the  directors  to  declare  an  extra  dividend  of  2  per  cent,  from 
last  quarter’s  earnings  and  the  regular  16  per  cent,  dividend 
rate  seems  to  be  very  safe.  After  deducting  18  per  cent,  in 
dividends  out  of  the  1916  earnings  the  company’s  profit  and 
loss  surplus  shows  an  increase  of  $335,516,  whereby  the  book 
value  of  the  stock  has  increased  to  $210.75  a  share. 


Traffic — Operations  Since  the  dissolution  follows: 


Other  Receipts 

(Barrels) 

Total  12  months,  1912.  14,450,160 

Total  12  months,  1913.  14,162,156 

Total  12  months,  1914.  11,444,816 

Total  12  months,  1915.  11,054,733 

Total  12  months,  1916.  13,596,676 

Total  3  months,  1917.  3,414,519 


Runs 

(Barrels) 

182,291 

197,109 

203,355 

185,469 

174,500 

40,754 


Deliveries 

(Barrels) 

15,134,912 

15,443,721 

11,625,445 

11,069,067 

13,651,017 

3,718,337 


The  company’s  growth  and  earnings  for  the  last  five  years 


are  shown 

as  follows: 

Earnings 

Rate 

Plant 

Additions 

Depreci¬ 

ation 

Surplus 

1916 . 

$1,399,121 

26.78% 

'  $22,223 

$55,373 

$5,537,950 

1915 . 

813,729 

16.27% 

1,479,032 

78,678 

5,202,434 

1914 . 

1,434,741 

28.06% 

1,797 

101,402 

5,085,100 

1913 . 

2,070,495 

41.50% 

129,233 

419,433 

5,100,359 

1912 . 

2,420,211 

48.40% 

573,590 

5,029,864 

At  the  close  of  1906,  the  company’s  net  assets  were  $7,- 
Wfcp.115,  which  compares  with  net  assets  of  $10,537,9*0  at 


•  2 


Northern  Pipe  Line  Company 


tlie  close  of  1916.  At  the  close  of  1906,  plant  and  equipment 
were  carried  at  a  valuation  of  $2,392,517,  against  a  present 
value  after  depreciation  of  $5, 454., 859. 

Directors — D.  S.  Bushnell,  George  Chesebro,  W.  A.  Harris, 
J.  R.  Fast,  New  York  City;  George  H.  Cobb,  A.  J.  Mc- 
Clatchey,  H,  R.  Rowe,  Binghampton,  N.  Y. 

Officers — President — D.  S.  Bushnell. 

Vice-President — George  H.  Cobb. 

Secretary — George  Chesebro. 

Treasurer — W.  A.  Harris. 

Transfer  Office — No.  26  Broadway,  New  York  City. 

Annual  Meeting — Last  Tuesday  in  January. 


NORTHERN  PIPE  LINE  COMPANY 

The  Northern  Pipe  Line  Company  was  incorporated  July  8, 
1889,  under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  was  $1,000,000,  but  in 
1906  this  was  increased  to  $4,000,000.  Par  value,  $100. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows:  1912,  10  per  cent.;  1913,  10  per  cent.;  1914,  10 
per  cent.;  1915,  10  per  cent.;  1916,  10  per  cent.;  1917,  Jan¬ 
uary  2,  5  per  cent.  (S.A. ). 

Properties — The  company  owns  a  trunk  pipe  line  system 
227  miles  in  length,  embracing  a  total  of  525  miles  of  6,  6  and 
8  inch  pipe.  The  line  extends  from  the  western  border  of 
Pennsylvania,  near  the  northern  border  of  Lawrence  County, 
where  it  receives  the  oil  from  the  Buckeye  Pipe  Line  Com¬ 
pany. 

The  line  from  that  point  extends  east  to  Bear  Creek,  Clarion 
County,  and  then  extends  northeast11  to  Colegrove,  McKean 
County,  where  a  connection  is  made  with  the  eastern  branch 
of  the  National  Transit  Line,  and  all  oil  handled  by  that 
branch  of  the  Transit  Company  is  secured  from  the  Northern 
Pipe  Line.  From  this  point  the  line  then  extends  north  to 
Olean,  N.  Y.,  where  it  connects  with  the  New  York  Transit 
lines. 

The  company’s  traffic  has  had  a  steady  growth  and  its 
permanency  is  practically  assured.  It  has  no  gathering  lines. 

The  financial,  statement  of  this  company  for  1916  com¬ 
pared  with  that  of  the  previous  year  is  as  follows: 


1916  1915 

*Net  Profits  .  $600,898  $428,433 

Dividends  . .  400,000  400,000 


Surplus  .  $200,898  $28,433 


♦Equal  to  15.02  per  cent,  on  $4,000,000  capital  stock, 
•  against  10.71  per  cent,  in  1915. 


Assets: 

Plant  . 

Materials  and  Supplies . 

Cash,  other  Inv.  and  Accts.  Rec 

Total  Assets . 

Liabilities: 

Capital  Stock  . . . 

Accounts  Payable . 

Reserve  Depreciation . 

Fire  Insurance . 

Profit  and  Loss . 

Total  Liabilities . 


1916 

1915 

$2,977,254 

$2,981,286 

8,696 

6,967 

2,872,152 

2,592,691 

$5,858,102 

$5,580,943 

$4,000,000 

$4,000,000 

206,886 

206,279 

943,611 

873,878 

5,922 

701,684 

500,786 

$5,858,102 

$5,580,943 

The  Ohio  Oil  Company 


53 


The  company  shows  a  50  per  cent,  growth  in  earnings 
during  1916  and  is  building  up  a  fine  surplus,  mostly  in  cash 
assets.  Being  a  switching  line  solely,  it  is  not  called  upon  to 
make  a  heavy. outlay  for  plant  extensions.  The  book  value 
of  the  stock  is  $117.54,  of  which  $66.63  represents  net  cash 
assets  per  share. 

The  progress  of  the  company  since  the  dissolution  is  shown 
comparatively  as  follows: 


Plant  Depreci- 

Earnings 

Rate  Additions 

ation 

Surplus 

1916 . 

$600,898 

15.02%  *$4,032 

$69,733 

$701,684 

1915 . 

428,433 

10.71%  ...... 

80,831 

500,786 

1914 . 

421,981 

10.55%  *14,501 

243,567 

472,352 

1913 . 

707,205 

17.68%  *32,084 

269,703 

450,371 

1912 . 

434,822 

10.87%  . 

279,777 

143,096 

♦Deficit  after  depreciation. 

On  December  31, 

1906,  the  company's 

net  assets  were 

$4,005,5 1  3 

against  net 

assets  of  $4,701,684  on  Dec. 

31,  1916. 

Traffic 

over  these 

lines  since  the  dissolution  has  been  as 

follows: 

Receipts 

Deliveries 

(Barrels) 

(Barrels) 

1917  (3  months) . 

3,823.077 

3,773,092 

191  6 . 

15,964,488 

1915 . 

11,766,651 

1914 . 

12,944,018 

13,962,857 

1913 . 

17,627,342 

17,574.819 

1912 . 

14,733,351 

15,815,364 

Directors— D.  S.  Bushnell,  New  York;  D.  M.  Sachs,  L.  Z. 

Duncan,  F.  G.  Boyer,  all  of  Oil  City,  Pa.;  B.  A. 
Towl,  New  York. 

Officers — President — D.  S.  Bushnell,  26  Broadway,  N.  Y. 

V.-P.  &  Gen.  Mgr. — D.  M.  Sachs,  Oil  City,  Pa. 
Secretary — George  Chesebro,  26  Broadway,  N.  Y. 
Treasurer — W.  A.  Harris,  26  Broadway,  N.  Y. 
Transfer  Office — 26  Broadway,  New  York  City. 

Corporate  Office — Oil  City,  Penna.  Annual  Meeting,  Jan¬ 
uary  20,  1916. 


THE  OHIO  OIL  COMPANY 

The  Ohio  Oil  Company  was  incorporated  in  1887  under  tha 
laws  of  Ohio.  It  is  now  only  a  producer  and  marketer  of 
crude  oil,  having  divorced  its  extensive  transportation  system. 

Capital  Stock — The  capital  stock  was  $2,000,000,  but  it 
was  increased  to  $10,000,000  and  then  to  $15,000,000,  the 
present  capitalization.  Par  value,  $25. 

On  January  31,  1917,  the  stockholders  voted  approval  of 
an  increase  in  capitalization  to  $60,000,000,  whereupon  the 
directors*  voted  a  stock  dividend  of  $75  a  share  to  be  paid 
March  20,  1917,  to  stock  of  record  February  15.  The  com¬ 
pany’s  intention  was  to  exchange  one  share  of  $100  par  value 
for  each  of  the  outstanding  600,000  shares  of  $25  par  value, 
but  the  Attorney  General  of  Ohio  ruled  that  the  capital 
stock  of  an  Ohio  company  cannot  be  increased  by  raising  the 
par  value  of  shares.  The  company  issued  notice  to  this 
effect  under  date  of  March  20,  adding  the  directors  have  not 
determined  what  further  action,  if  any,  will  be  taken  in  the 
matter.” 

Dividends — Since  dissolution  the  dividend  record  of  the 
company  has  been  as  follows:  1912,  20  per  cent.  ($3,000,000); 


54 


The  Ohio  Oil  Company 


1913,  57  per  cent.  ($8,550,000);  1914,  29  per  cent.  ($4,350,000); 
1915,  50  per  cent.  ($7,500,000),  and  $33.33  paid  in  stock  of 
Illinois  Pipe  Line  Company;  1916,  92  per  cent.  ($13,800,000); 
1917,  March  20,  5  per  cent,  and  19  per  cent,  extra  (Q). 

The  dividend  record  of  this  company  has  been  truly  re¬ 
markable.  In  the  five  year  period  stace  the  dissolption,  it 
has  paid  a  total  of  248  per  cent,  in  caqh  on  $25  par  and  one- 
third  of  a  $100  par  share  of  Illinois  Pipe  Line  stock.  In  other 
words,  each  share  of  stock  has  received  $62  in  cash  and 
$33.33  in  stock,  the  latter,  however,  having  a  market  value 
around  $60  for  the  fraction  and  drawing  dividends  on  a 
24  per  cent,  basis. 

On  December  21,  1914,  the  stockholders  ratified  a  proposi¬ 
tion  to  turn  over  the  company’s  trunk  and  gathering  pipe  line 
systems,  with  the  equipment  belonging  thereto  in  Illinois, 
Indiana,  Ohio  and  Pennsylvania,  to  a  newly  formed  corpora¬ 
tion,  known  as  the  Illinois  Pipe  Line  Company,  and  receive 
in  return  that  company’s  $20,000,000  capital  stock.  As  there 
were  200,000  shares,  $100  par  value,  of  pipe  line  stock  to  be 
distributed  among  600.000  shares,  $25  par  value,  of  Ohio  Oil 
Company  stock,  the  directors  declared  a  133  1-3  per  cent, 
dividend,  payable  on  and  after  February  1,  1915,  in  Illinois 
Pipe  Line  stock  to  Ohio  Oil  Company  stockholders  of  record 
January  2.  1915. 

Properties — The  company  controls  extensive  tracts  of  oil 
lands  in  Ohio,  Indiana,  Illinois,  Wyoming  and  Kansas.  It 
ranks  with  the  largest  individual  producers  of  crude  oil 
among  the  former  subsidiary  companies  of  Standard  Oil.  The 
company’s  producing  wells  yield  three-fourths  of  the  produc¬ 
tion  from  the  Illinois  and  Indiana  fields. 

The  company  has  taken  a  leading  part  in  the  development 
of  the  new  oil  fields  of  Wyoming  and  Montana,  which  experts 
declare  will  prove  the  country’s  greatest  basin  of  high  grade 
oil.  Its  first  investment  was  in  the  Grass  Creek  Field,  north 
of  Thermopolis,  Wyo.,  where  it  now  has  about  6,000  barrels  of 
daily  production  and  is  transporting 'oil  through  the  Illinois 
Pipe  Line  Company’s  lines  to  Chatham,  where  the  oil  is 
loaded  on  tank  cars  and  shipped  to  Casper,  Wyo.  Further 
north  the  company  purchased  during  1916,  an  extensive  tract 
in  the  Torchlight  Dome  from  the  Valentine  interests.  In  the 
Elk  Basin  district,  which  runs  north  and  south  of  the  Wyom- 
ing-Montana  state  line,  the  company  has  extensive  holdings 
and  has  proven  up  the  territory  by  bringing  in  three  flowing 
wells,  two  of  which  are  in  Montana.  The  oil  from  this  sec¬ 
tion  is  handled  by  the  Illinois  Pipe  Line,  which  has  a  pump¬ 
ing  station  and  a  short  3-inch  line  to  Frannie,  Wyo. 

Late  in  1916,  the  company  purchased  for  $500,000  a  half 
interest  from  the  Merritt  Oil  Corporation  in  a  500  acre  tract 
in  the  heart  of  the  Big  Muddy  field,  eighteen  miles  east  of 
Casper,  Wyo.,  and  brought  in  a  2,000-barrel  well  on  the  prop¬ 
erty.  The  company  has  acquired  additional  acreage  in  the 
Big  Muddy  field,  which  is  regarded  as  one  of  the  most  pro¬ 
lific  pools  of  high  grade  oil  developed  during  1916.  The 
company  is  thoroughly  entrenched  in  every  developed  section 
of  the  Wyoming  fields.  In  October,  1916,  the  United  States 
Court  of  Appeals  rendered  a  decision  confirming  its  title  to 
6,000  acres  in  the  Grass  Creek  field,  Wyoming,  which  the 
Government  had  fried  to  seize  under  the  Land  Withdrawal  Act. 

Recently  the  company  has  made  a  contract  to  deliver 
1,000,000  barrels  of  its  Wyoming  production  to  the  new  refin¬ 
ery  of  the  Imperial  Oil  Company  at  Regina,  B.  C. 

The  company  has  an  extensive  field  organization  in 


I 


\ 


The  Ohio  Oil  Company 


55 


Wyoming,  consisting  of  geologists,  engineers  and  drilling  ex¬ 
perts,  and  has  twelve  strings  of  tools  working. 

In  September,  1916,  the  company  entered  the  new  Kansas 
fields  by  purchasing  the  Mid-Kansas  Oil  and  Gas  Company 
properties  in  the  Augusta  pool,  covering  7,000  acres  with 
twenty  producing  wells. 

Ohio  Oil  Company’s  financial  statement  for  1916  compares 
as  follows: 


Assets:  1916 

Producing  and  Mdse.  Properties .  $15,515,290 

Non-Producing  Properties  .  1,406,842 


Cash,  Invest.,  Accts.  Rec.,  Mdse.,  etc.  65,851,086 


1915 

$14,903,291 

1,206,899 

65,611,140 


Total  Assets.. 

Liabilities: 

Capital  Stock 
Accounts  Payable 
Surplus  . 


$82,773,218  $81,721,330 


$15,000,000  $15,000,000 

926,297  909,587 

66,846,921  65,811,743 


Total  Liabilities  .  $82,773,218  $81,721,330 

Net  earnings  at  the  rate  of  98.9  per  cent,  are  indicated 
through  the  payment  of '$13,800,000  in  dividends  and  an  in¬ 
crement  to  Surplus  of  $1,035,178  during  the  year,  making  a 
total  gain  of  $14,S35,178,  after  adjustments.  As  no  clew  is 
furnished  to  the  amount  of  depreciation  written  off,  an  in¬ 
crease  of  $611,999  in  Producing  Properties,  gives  no  line  on 
the  company’s  heavy  investments  during  the  year  in  new 
Wyoming  properties.  Net  working  capital  has  increased  a 
little  above  $200,000,  but  the  company  for  the  first  time  fails 
to  separate  its  cash  assets  from  its  inventory.  It  would  ap¬ 
pear  that  the  company  distributed  its  entire  earnings  for  the 
year  in  dividends  and  investments  in  new  producing  territory. 


Reviewing  the  operations  of  the  company  since  the  dis¬ 
solution  affords  the  following  comparison: 


Indicated 

Earnings 

1916..  $14,835,178 

1915..  16,621,920 

1914..  9,720,354 

1913..  22,803,661 

1912 . 

*After  disposing 


Additions  to 
Production 
Properties  After 

Rate  Dividends  Depreciation  Surplus 
98.9%  $13,800,000  $612,000  $66,846,921 

110.8%  7,500,000  1,166,650  *65,811,743 

64.8%  4,350,000  f 1,673,320  68,849,427 

152.0%  8,550,000  1,461,384  63,479,073 

.  3,000,000  _ _  49,225,412 

of  its  pipe  line  properties  carried  at  $12,- 


159,604  to  the  Illinois  Pipe  Line  Company.  tDecrease. 


On  December  31,  1906,  the  company’s  net  assets  were 
$9,2S1,136,  which  compares  with  net  assets  of  $81,846,921  on 
December  31,  1916,  showing  a  growth  of  $72,565,785  in  the 
ten  year  period  despite  the  distribution  of  pipe  line  assets 
carried  at  $12,159,604  and  cash  dividends  aggregating  $37,- 
200,000. 

Officers — President — J.  C.  Donnell. 

Vice-President — J.  K.  Kerr. 

Secretary — F.  E.  Hurley. 

Treasurer — J.  L.  Cook. 

Transfer  Agent — W.  B.  Filson,  Findlay,  Ohio. 

Annual  Meeting — May  29th. 


Penn-iVlex.  Fuel  Company 


i* 


PENN-MEX.  FUEL  COMPANY 

Incorporated  in  Delaware  in  J.912  with  a  capital  stock  of 
$10,000,000.  Par  value,  $25.00. 

Fifty-one  per  cent,  of  the  stock  is  owned  by  the  South 
Penn  Oil  Company,  one  of  the  leading  oil  producing  companies 
of  the  world,  which  has  assumed  active  control  of  the  field 
operations. 

Properties — The  company  controls  nearly  300,000  acres  of 
leases  and  lands  held  in  fee  in  the  principal  producing  sec¬ 
tions  in  the  State  of  Vera  Cruz,  Mexico,  which  are  rated 
among  the  best  in  that  country.  Its  principal  producing  area 
is  in  the  Alamo  field,  which  lies  about  twelve  miles  south  and 
a  little  west  of  the  famous  Potrerd  del  Llano  well  of  the 
Mexican  Eagle  Company.  This  tract  of  93,000  acres  stretches 
for  twenty-three  miles  along  the  south  bank  of  the  Tuxpam 
River.  There  are  three  producing  wells  on  this  tract  which 
are  partly  shut-in.  Alamo  No.  1  has  an  estimated  produc¬ 
tion  of  5,000  barrels  per  day;  Alamo  No.  2  is  considered  one 
of  the  greatest  wells  in  Mexico,  having  shown  a  capacity  of 
from  60,000  to  80,000  barrels  per  day  if  allowed  to  run  to 
its  full  capacity.  The  well  is  being  held  in  to  about  10.000 
barrels  per  day  at  the  present  time.  The  oil  from  the  well 
tests  about  21  to  22  degrees  Baume.  Alamo  No.  3  was 
drilled  in  during  December,  1915.  but  has  not  been  allowed  to 
flow  because  of  scarcity  of  tankage.  It  is  reported  to  be  a 
large  producer.  Wells  Nos.  4  and  5  on  the  same  tract,  have 
been  shut  down  on  top  of  the  sand. 

The  company  ajfo  has  producing  wells  in  the  Panuco  and 
Chijol  fields  in  the  northern  section  of  the  State  adjacent  to 
the  Panuco  River. 

Field  operations  are  under  the  direction  of  the  South  Penn 
Oil  Company,  which  controls  51  per  cent,  or  306,000  shares  of 
Penn-Mex  stock.  On  its  1915  balance  sheet  South  Penn  Oil 
carried  "stock  owned”  at  $5,441,138,  as  against  $710,000  in 
previous  years. 

Pipe  Lines — The  company  has  A>uilt  twenty-eight  miles  of 
eight-inch  lines,  which  is  paralleled  by  a  six-inch  water  line 
and  three  pumping  stations.  These  stations  known  as  the 
initial,  interdmediate  and  terminal,  are  about  sixteen  miles 
apart.  The  engines  pump  under  800  to  900  pounds  pressure 
and  as  the  oil  is  heavy,  two  National  Transit  California  type 
oil  heaters  are  included  in  the  equipment.  These  are  oper¬ 
ated  by  the  exhaust  steam  from  the  big  pumping  engines. 
The  pipe  line  extends  from  the  Alamo  field  to  Tuxpam  Bar, 
where  the  company  has  an  extensive  storage  plant  and  sea¬ 
loading  terminals.  These  sea-loading  facilities,  which  have 
a  delivery  capacity  of  1,800  to  2,500  barrels  per  hour,  can 
load  four  tankers  at  one  time.  Owing  to  quick  tide  changes 
it  is  necessary  to  load  with  great  rapidity.  The  present  nor¬ 
mal  capacity  of  the  pipe  line  is  40,000  barrels  per  day,  which 
can  be  raised  to  60,000  barrels  under  pressure.  The  entire 
pipe  line  and  pumping  station  system  was  installed  by  the 
National  Transit  Company  and  is  thoroughly  up-to-date. 
The  machinery  and  pumping  equipment  connected  with  the 
pipe  line  system  represents  an  investment  of  more  than 
$1,000,000.  The  company  also  has  fourteen  miles  of  narrow 
gauge  railroad  from  Zapotal,  at  the  head  of  navigation  of 
the  Tuxpam  River  to  the  Alamo  fields.  There  is  a  machine 
shop  and  storage  station'  at  Zapotal. 

Traffic — The  company’s  production  and  shipments  for  the 

last  two  years  are  as  follows: 


Penn-Mex.  Fuel  Company 


57 


Production  Shipments  Tankage 


*1916 .  3,493,276  3,353,489  644,435 

1915 .  3,666,405  3,073,176  . 


*Figures  for  1916  are  for  eleven  months,  as  no  oil  was 
produced  or  shipped  during-  July,  1916,  because  of  the 
forced  exodus  of  Americans  from  Mexico. 

The  balance  sheet  of  the  company  as  of  December  21,  1916, 
follows: 


Assets 

Property  Account — Producing  &  Non-Producing  $11,513,311.43 


Stock  of  Penn  Fuel  Company .  5,000.00 

Material  and  Merchandise .  302,036.68 

Cash  and  Oil  on  Hand .  287,715.99 

Accounts  Receivable  . i .  447,503.83 

Advances  to  Subsidiaries.. .  81,533.83 


Total  Assets .  $12,637,101.76 

Liabilities 

Capital  Stock . . . ' .  $10,000,000.00 

Notes  Payable .  2,250,000.00 

Accounts  Payable .  56,512.64 

Undivided  Profits .  330,589.12 


Total  Liabilities .  $12,637,101.76 


The  company  furnished  no  income  account  and  without  a 
prior  balance  sheet  there  is  no  way  to  deduct  the  distribution 
of  profits.  It  is  apparent,  however,  that  the  company  has 
emerged  successfully  from  the  development  stage  and  when 
shipping  conditions  are  more  normal  will  be  able  to  render 
a  handsome  return  in  dividends.  Penn  Fuel  Company,  which 
appears  in  the  balance  sheet,  is  a  company  formed  to  market 
in  Mexico,  the  gasolene  produced  from  the  casinghead  gas 
taken  from  the  company’s  oil  wells. 

The  company  has  long  time  contracts  for  its  oil  with 
Standard  Oil  Company  of  New  Jersey,  but  the  scarcity  of 
tankers  since  the  outbreak  of  the  war  has  militated  against 
a  larger  movement  of  its  production. 

The  installation  of  compressors  for  obtaining  casinghead 
gasolene  from  its  Alamo  wells  promises  to  be  a  source  of 
profit  when  more  normal  conditions  obtain  in  Mexico. 

With  the  immense  expansion  impending  in  the  fuel  oil 
trade  and  the  growing  demand  for  Mexican  oil  for  the  manu¬ 
facture  of  lubricants,  it  is  apparent  that  the  company  will 
be  able  to  earn  at  a  very  high  rate  on  its  present  capitaliz¬ 
ation,  which  is  exceedingly  modest  in  view  of  the  high  value 
of  its  producing  properties. 

Officers — J.  C.  Trees,  President. 

E.  E.  Crocker,  Vice-President. 

H.  C.  Reeser,  Secretary. 

F.  J.  Huffman,  Treasurer. 

Directors — George  W.  Crawford,  E.  E.  Crocker,  T.  J.  Huff¬ 
man,  M.  L.  Benedum,  J.  C.  Trees,  John  D.  Mc¬ 
Kinney  and  Joseph  Seep. 

Transfer  Office — Farmers  Deposit  National  Bank  Building, 
Pittsburgh,  Pa. 


58 


Pierce  Oil  Corporation 


PIERCE  OIL  CORPORATION 

Incorporated  in  Virginia  in  June,  1913,  to  take  over  the 
assets  and  business  of  the  Waters  Pierce  Oil  Company  (estab¬ 
lished  in  St.  Louis,  Missouri,  in  1855)  and  the  Pierce  Fordyce 
Oil  Association  (established  in  1910  to  take  over  the  business 
in  Texas  of  the  Waters  Pierce  Oil  Company). 

Capitalization —  Authorized  Outstanding  Par 

Common  Stock  .  $33,000,000  $13,857,500  $25 

10-Year  Gold  Debenture,  6c.  12,000,000  12,000,000 

Interest  January  and  June,  payable  at  Ladenburg,  Thal- 
mann  &  Company,  New  York. 

Stockholders  met  December  23,  1915,  and  ratified  an  in¬ 
crease  of  the  capital  stock  from  $30,000,000  to  $33,000,000  and 
authorized  a  further  issue  of  $2,000,000  five-year-  six  per 
cent,  gold  notes,  convertible  into  common  stock  at  20  at  the 
option  of  the  holder  and  redeemable  at  par  after  eighteen 
months.  The  notes  -were  undefKvritten  by  Hayden,  Stone  & 
Company  and  Ladenburg,  Thalmann  &  Company. 

j  At  the  time  of  incorporation  provision  was  made  for  $15,- 
000,000  preferred  and  $15,000,000  common,  each  $100  par. 
$10,500,000  of  common  was  issued  and  the  preferred  stock 
was  trusteed  as  security  for  an  issue  of  $8,000,000  one  year 
six  per  cent,  gold  notes.  From  the  proceeds  of  the  sale  of 
these  notes,  the  $400,000  capital  stock  of  the  Waters  Pierce 
Oil  Company  was  acquired  on  a  basis  of  $1,250  in  cash  and 
$2625  of  new  stock  for  each  share  of  Waters  Pierce  stock, 
fractional  shares  being  taken  up  pro  rata. 

On  June  25,  1914,  the  stockholders,  voted  to  make  the 
capitalization  $30,000,000  all  common  stock  of  a  par  value 
of  $25,  and  authorized  an  issue  of  $10,000,000  ten  year,  six 
per  cent,  convertible  gold  debentures. 

Of  the  new  stock,  $10,500,000  was  exchanged  for  the  out¬ 
standing  common  stock;  $10,000,000  is  reserved  for  Issue 
under  the  debenture  agreement;  $3,100,000  of  stock  was  set 
aside  to  sell  for  cash  for  capital  expenditures  in  the  exten¬ 
sion  of  the  company’s  business  and  $6,400,000  was  reserved  to 
acquire  new  properties  or  shares  in  any  corporation  or  associ¬ 
ation,  which  means  the  Pierce  Fordyce  Oil  Association,  when 
permission  to  do  so  is  obtained  from  the  State  of  Texas. 
Meanwhile  as  the  corporation  holds  90  per  cent,  of  outstand¬ 
ing  Pierce  Fordyce  certificates,  it  controls  the  business  of 
that  company  and  has  deposited  the  certificates  as  additional 
security  for  its  $10,000,000  gold  notes. 

The  sale  of  the  new  $10,000,000  debenture  issue  provided 
funds  for  the  retirement  of  the  $8,000,000  gold  notes  and 
.cleared  the  way  for  the  cancellation  of  the  company’s  pre¬ 
ferred  stock. 

Business — The  corporation  constitutes  a  complete  cycle  in 
the  oil  industry,  being  engaged  in  the  producing,  transport¬ 
ing,  refining  and  marketing  of  petroleum  products.  Its  posi¬ 
tion  is  strongly  entrenched  as  previous  to  the  dissolution,  it 
controlled  the  marketing  business  of  the  Standard  Oil  Com¬ 
pany  in  the  Southwestern  States  and  Mexico,  where  it  was 
engaged  in  the  oil  business  many  years  before  any  other 
oil  companies  entered  the  Mexican  field. 

Producing  Properties — One  hundred  and  twenty  thou¬ 
sand  acres  of  oil  lands  in  Oklahoma,  Arkansas  and  Mexico, 
owned  in  fee  or  lease  and  estimated  to  contain  sufficient  oil 
to  supply  the  requirements  of  the  refineries  for  more  than 
twenty-five  years.  Included  in  these  holdings  are  leases  in 
the  Cushing  and  Morris  Fields  in  Oklahoma,  adjacent  to  the 


Pierce  Oil  Corporation 


5ft 


company’s  newest  refinery  and  10,000  acres  in  the  Panuco 
field,  adjacent  to  the  company’s  refinery  at  Tampico,  Mexico. 

Transportation  Properties — The  company  operates  its  own 
pipe  lines  from  its  producing  properties  to  its  refinery  Ln 
Oklahoma  and  has  pipe  line  connections  between  its  produc¬ 
ing  field  in  Mexico  and  the  Panuco  River,  whence  it  barges 
its  oil  to  the  Tampico  refinery.  The  company  also  has  two 
tank  steamships  with  a  total  carrying  capacity  of  60,000  bar¬ 
rels,  numerous  oil  barges  and  tugs,  and  also  owns  and  oper¬ 
ates  908  tank  cars. 

The  company  is  expending  $1,000,000  on  the  construction 
of  100  miles  of  eight-inch  pipe  line  from  the  Healdton  field 
to  its  Fort  Worth  refinery. 

Refining  Properties — Five  refineries  of  modern  construction 
located  at  Fort  Worth  and  Texas  City,  Texas;  Tulsa,  Okla¬ 
homa;  Tampico  and  Vera  Cruz,  Mexico.  The  combined  daily 
charging  capacity  of  these  refineries  is  26,500  barrels  of  crude 

oil. 

The  company  has  a  long  time  contract  with  the  Mag¬ 
nolia  Pipe  Line  to  supply  crude  oil  to  its  Texas  refineries, 
while  its  Tulsa  refinery  is  connected  directly  with  Cushing 
production  through  the  company’s  own  pipe  line. 

Marketing  Properties — The  combined  companies  have 
1,122  main  distributing  stations,  through  which  they  dis¬ 
tribute  their  product  in  more  than  17,000  cities  and  towns. 
Nearly  all  of  the  distributing  stations  are  on  freehold  prop¬ 
erty  owned  by  the  corporation  and  comprise  brick,  stone 
and  iron  built  warehouses  and  offices.  The  company  markets 
gasolene,  naphthas,  lubricating  oils,  greases,  wax,  cotton 
seed  oil,  linseed  oil,  turpentine,  soap,  oil  lamps,  stoves  and  all 
appliances  and  accessories  for  the  use  of  petroleum. 

Th^  above  enumeration  of  properties  ^covers  the  com¬ 
bined  holdings  of  the  Pierce  Oil  Corporation  and  the  Pierce- 
Fordyce  Oil  Association.  The  latter  company  has  not  yet 
been  absorbed  owing  to  technicalities  of  the  Texas  Corpora¬ 
tion  laws.  A  bill  passed  by  the  Texas  legislature  and  sigTied 
by  Governor  Fletcher  during  March,  1917,  will  enable  the 
company  to  take  over  the  Pierce  Fordyce  properties  and 
operate  as  a  single  company. 

The  financial  statement  of  the  company  for  1916  is  not 
yet  issued,  but  it  is  officially  stated  that  net  earnings,  includ¬ 
ing  subsidiary  companies,  will  be  in  excess  of  $3,000,000, 
showing  a  balance  of  more  than  $2,300,000  after  fixed  charges 
or  at  the  rate  of  13  per  cent,  on  the  $18,000,000  common 
stock  outstanding. 

The  financial  statement  of  the  Pierce  Oil  Corporation  for 
1915,  compared  with  the  previous  year,  is  as  follows: — 

1915  1914 

Trading  Profits .  $1,085,643.96  $644,717.14 

Deduct:  Miscellaneous  Expenses, 

Reserves,  etc .  164,053.56  126,494.46 


Add:  Income  from  Int.  Received 

$ 

921,590.40 

$518,222.68 

117,518.87 

Net  Profits . 

Deduct:  Interest  on  Debentures. 

$ 

921,590.40 

600,000.00 

$635,741.55 

540,000.00 

Deduct:  Other  Interest . . 

$ 

321,590.40 

4,802.89 

$95,741.55 

197,302.56 

Surplus  for  the  Year . 

$ 

316,787.51 

*$101,561.01 

♦Deficit. 


RANGE  OF  STANDARD  OIL 


COMPANY 


Anglo-American  . 

Anglo-’  American . 

Atlantic  Refining  Co . 

Borne  Scrymser  . 

Buckeye  Pipe  Line  Co . 

Chesebrough  Mfg.  Co.  (new) 

Chesebrough  Mfg.  Co . 

Colonial  Oil  Co . 

Continental  Oil  (Iowa) ...... 

Continental  Oil  (Colorado)  .  . 
Crescent  Pipe  Line  Co .....  . 

Cumberland  Pipe  Line  Co... 

Eureka  Pipe  Line  Co . 

Galena  Signal  (Common)... 
Galena  Signal  (since  inc.)... 
Galena  Signal  (Preferred).. 
Indiana  Pipe  Line  Co . 

.LillIlOlS  ripe  Liinc  v/O . . 


International  Petroleum  Co . 

National  Transit  Co.. . 

National  Transit  Co . . 

New  York  Transit  Co . 

Northern  Pipe  Line  Co . 

Ohio  Oil  Co . : . 

Penn-Mex  Fuel  Co . 

Pierce  Oil  Corporation . . 

Pierce  Oil  Corporation . . 

Prairie  Oil  &  Gas . 

Prairie  Oil  &  Gas  (ex  pipe  lines). 

Prairie  Pipe  Line . 

Solar  Refining-  Co . 

Solar  Refining  Co . 

Southern  Pipe  Line  Co . 

South  Penn  Oil  Co . 

South  Penn  Oil  Co . 

S.  W.  Penn  Pipe  Lines . 

Standard  Oil  California  . 

Standard  Oil  California  .  .  .  ,\ 

Standard  Oil  California  . 

Standard  Oil  Indiana  . 

Standard  Oil  Kansas  . 

Standard  Oil  Kansas  . 

Standard  Oil  Kentucky  . 

Standard  Oil  Kentucky  . 

Standard  Oil  Nebraska  . 

Standard  Oil  Nebraska  . 

Standard  Oil  New  Jersey  . 

Standard  Oil  New  York  . 

Standard  Oil  New  York  . 

Standard  Oil  Ohio  . 

Standard  Oil  Ohio  . 

Swan  &  Finch  Co . , . 

Union  Tank  Line  Co.. . 

Vacuum  Ojl  Co . 

Washington  Oil  Co . 


Capital 

Par 

£1,000,««© 

£1 

2,000,00© 

1 

$3,000,000 

$100 

200,000 

100 

10,000,000 

50 

1,500,000 

100 

500,000 

100 

2.i0,000 

100 

300,000 

100 

3,000,000 

100 

3,000,000 

50 

1,000,000 

100 

5,000,000 

100 

8,000,000 

100 

12,000,000 

100 

2,000,000 

100 

5,000,000 

50 

20,000,000 

10© 

£20,000,000 

£1 

$12,727,572 

$25 

6,362.500 

12.50 

5,000,000 

100 

4,000,000 

100 

15,000,000 

25 

10,000,000 

25 

10,500,000 

100 

13,857,500 

25 

18,000,000 

100 

18,000,000 

100 

27,000.000 

100 

500,000 

100 

2,000,000 

100 

10,000,000 

100 

2,500,000 

10O 

12,500,000 

100 

3,500,000 

100 

25,000,000 

100 

50,000,000 

100 

74,529,983 

100 

30,000,000 

100 

1,000,000 

1(M) 

2,000,000 

100 

1,000,000 

100 

3,000,000 

100 

800,000 

100 

1,000,000 

100 

98,338,382 

100 

15,000,000 

100 

75,000,000 

100 

100 

7,000,000 

100 

500,000 

100 

12,000,000 

100 

15,000,000 

100 

100,000 

10 

>CKS  IN  NEW  YORK  MARKET 


1912 


1913 


1914 


I 


|High 

Low 

26 

6¥< 

785 

245 

300 

110 

202 

64 

900 

550 

195 

100 

1850 

600 

90 

25 

115 

60 

460 

120 

308 

190 

150 

125 

165 

60 

|  77 

22 

405 

115 

190 

75 

142 

65 

350 

180 

650 

398 

315 

120 

925 

360 

240 

95 

227 

110 

200 

130 

375 

200 

630 

130 

950 

150 

390 

170 

435 

350 

695 

267 

355 

140 

300 

175 

102 

45 

202 

149 

1  40 

8 

High 

Low 

27 

16 

14 

11 

810 

560 

365 

220 

117 

150 

705 

645 

145 

90 

2700 

1690 

230 

180 

70 

52 

98 

58 

395 

335 

312 

285 

210 

165 

147 

130 

163 

112 

57 

35 

370 

308 

127 

90 

149 

120 

70 

30 

447 

275 

760 

600 

350 

175 

280 

230 

1025 

880 

287 

188 

175 

144 

273 

163 

423 

308 

610 

.  445 

590 

266 

698 

310 

375 

298 

500 

260 

448 

328 

705 

575 

183 

136 

400 

257 

-  — 1  • 

330 

175 

94 

60 

199 

179 

52 

20 

|  High  Low 

18%  9 

856  400 

•  375  250 

184  95 

695  620 

145  80 

275  175 

70  35 

75  40 

355  195 

197  145 

152  135 

155  80 

165  120 

49  27 

335  195 

133  68 

201  140 

117  40 

21  10 

615  290 


400  220 

262  170 

425  200 

170  105 

367  240 

575  370 

540  265 

710  665 

300  198 

505  280 

436  315 

257  160 

500  370 

335  140 

109  65 

258  140 

77  30 


1915 

High  Low 


19% 

13% 

700 

530 

295 

250 

125 

98 

750 

650 

180 

90 

282 

220 

53 

36 

70 

41 

295 

215 

173 

144 

145 

134 

117 

93 

210 

118 

141,4 

5 

38 

28 

242 

220 

116 

88 

188 

122 

71 

52 

19 

9 

462 

210 

255 

125 

325 

216 

243 

200 

390 

253 

140 

103 

397 

270 

560 

393 

488 

330 

365 

240 

365  "305 

568 

385 

238 

178 

560 

413 

175 

105 

92 

78 

242 

179 

54 

30 

1916 


High 

Low 

18 

14% 

1010 

620 

530 

275 

125 

85 

■  500 

302 

1025 

725 

180 

160 

590 

270 

48 

39 

155 

45 

260 

200 

206 

148 

147  . 

134 

117 

87 

255 

155 

13  y2 

10 

35 

30 

20 

14 

235 

170 

122 

92 

398 

190 

72 

54 

17% 

10% 

655 

360 

358 

205 

415 

270 

230 

187 

625 

308 

130 

102 

387 

202 

382 

345 

895 

490 

565 

430 

810 

335 

585 

335 

715 

494 

285 

199 

630 

535 

463 

311 

155 

96 

103 

79 

400 

215 

ss 

25 

62 


Pierce  Oil  Corporation 


Comparative  Balance  Sheets,  Dec.  31,  1915  and  1914 


Assets 


Dec.  31,  1915  Dec.  31,  1914 


.Capital  Assets: 

Oil  Lands,  Leaseholds  and  De¬ 
velopments,  Pipe  Lines,  etc. 

(Including  the  Capital  Stock 
of  and  Advances  to  Mexican 

Fuel  Company)  . $20,387,810.56  $20,314,343.84 

Real  Estate  Occupied  by  Refin¬ 
eries  and  Distributing  Stations  2,011,019.21  2,0OG,703.11 

Buildings,  Plants  and  Equip....  3,814,164.79  3,713,070.33 


$26,212,994.56  $26,034,117.28 


Working  Assets: 

Tank  Steamers  .  $626,016.98 

Tank  Cars .  283,506.14 

Stable  and  Garage  Equipment..  179,929.56 

Iron  Barrels  and  Drums .  214,425.35 

Drilling  Tools  and  Equipment..  16,133.30 

Interest,  Insurance,  etc.,  Prepaid  186,276.38 


$622,814.83 

283,658.30 

195,271.53 

214,327.55 

17,908.14 

67,882.79 


Current  Assets: 


$1,506,287.71 

$1,401,863.14 

.  $2,239,501.54 

$2,536,864.07 

.  2,586,680.58 

2,566.654.19 

.  1,529,459.73 

1,021,932.25 

*$6,355,641.85 

$6,125,450.51 

Total  Assets . $34,074,924.12  $33,561,430.93 


\ 


*Net  current  assets  subject  to  fluctuation  in  Mexican  ex¬ 
change,  amounting  to  4,249,133,000  pesos,  are  carried 
at  the  nominal  value  of  $1.00. 

Liabilities  Dec.  31,  1915  Dec.  31,  1914 

Surplus: 

Capital  Stock — Authorized  . $33,000,000.00  $30,000,000.00 

Dess:  Held  for  Conversion  of — 

10-Tear  6%  Debentures . $10,000,000.00  $10,000,000.00 

5-Tear  6%  Convertible  Gold  Notes  2,500,000.00 . 

Unissued  .  6,642,500.00  6,142,500.00 


$19,142,500.00  $16,142,500.00 


Net  Amount  Issued . $13,857,500.00  $13,857,500.00 

6%  Convertible  Sinking  Fund  De¬ 
bentures  Pavable  at  105%  of 

Face  Value  July  1,  1924 . $10,000,000.00  $40,000,000.00 


6%  Five-Tear  Convertible  Gold 

Notes,  due  Jan.  1,  1921 .  $2,000,000.00 


Purchase  Money  Obligations: 

Purchase  of  Oil  Lands  and 

Leaseholds  .  $  129,752.34  $  164,328.38 

Steamship  and  Car  Purchase  Ob¬ 
ligation,  Maturing  Serially...  144,057.96  219,548.88 


$  273,810.30  $  383,877.26 


Pierce  Oil  Corporation 


6S 


Current  Liabilities: 

Notes  Payable,  Secured  and  Un¬ 
secured  .  $  709,278.47  $1,132,569.04 

Accounts  Payable  and  Accrued 

Liabilities  .  1,123,708.54  1,511,123.89 


$1,833,077.01  $2,643,692.93 


Capital  Surplus .  $6,625,525.37  $6,586,424.96 

Less — Reserve  to  Reduce  Value 
of  Current  Silver  Assets  in 

Mexico  to  $1.00 .  921,711.85  . 


$5,703,813.52  $6,586,424.96 

Balance  of  Profit  and  Loss  Acct.  406,723.29  89,935.78 


$6,110,536.81  $6,676,360.74 


Total  Liabilities  . $34,074,924.12  $33,561,430.93 

The  net  current  assets  in  Mexico  at  December  31,  1914 
(which  were  shown  as  one  account  in  last  yedr’s  published 
balance  sheet),  are  for  purposes  of  comparison  distributed 
under  the  respective  headings  of  assets  and  liabilities  in  the 
above  balance  sheet. 

Remarks — The  company’s  financial  report  for  1915,  which 
includes  earnings  of  the  Pierce-Fordyce  Oil  Association,  in¬ 
dicates  improvement  over  the  previous  year. 

The  reports  for  1915  show  that  during  the  year  the  com¬ 
panies,  considered  as  a  system,  earned  $1,555,457.05  avail¬ 
able  for  the  payment  of  interest  charges.  Interest  ””.yments 
amounted  to  $696,523.16,  so  that  the  income  available  for 
that  purpose  was  nearly  two  and  one-half  times  the  require¬ 
ment.  During  the  year  liberal  charges  were  made  against 
income  for  depreciation,  bad  debts,  fire  losses  and  miscel¬ 
laneous  expenses.  The  Pierce-Fordyce  Oil  Association  made 
a  charge  against  its  income  of  $209,440.80  to  provide  for  ex¬ 
traordinary  damage  to  its  property  in  Texas  City  resulting 
from  the  severe  storm  at  that  place  in  August,  1915. 

The  operations  in  Mexico  during  the  year  are  reported 
to  show  a  profit  in  Mexican  currency,  but  owing  to  the  de¬ 
cline  in  the  exchange  market  to  have  resulted  in  a  loss  of 
$54,6S3.01,  which  also  was  charged  against  the  income  of  the 
year.  It  is  stated  that  in  normal  conditions  the  business  in 
Mexico  is  very  profitable.  The  properties  located  in  Mexico 
have  been  well  protected  and  the  organization  maintained 
during  the  trying  conditions  of  the  last  twelve  months. 

As  of  December  31,  1915,  the  companies,  together  had 
current  and  working  assets,  amounting  to  $8,528,429.09, 
whereas  their  current  liabilities  aggregated  only  $1,964,630.39. 
The  cash  on  hand  at  the  end  of  the  year  amounted  to  $1,- 
586,162.83.  In  the  current  and  working  assets  the  receivables 
and  other  items  subject  to  fluctuations  in  Mexican  exchange 
have  been  written  down  to  the  nominal  value  of  $1.00.  This 
writing  down  made  necessary  an  adjustment  of  the  accounts 
amounting  to  $921,711.85  in  United  States  currency.  That 
amount  was  charged  to  capital  surplus,  to  which  account  the 
final  value  of  the  items  will  be  credited. 

To  provide  for  the  cost  of  additional  facilities  and  to 
supply  additional  working  capital,  the  Pierce  Oil  Corporation 
issued  $2,000,000  5-Year  6%  Convertible  Notes  during  the 
year.  It  is  understood  that  the  added  facilities  constructed 
with  the  proceeds  from  the  sale  of  the  notes  have  not  been 
put  in  operation  as  yet  and  that  in  consequence  the  pro- 


Pierce  Oil  Corporation 


t»  4 


ductivity  of  the  new  monies  provided  during-  the  year  has 
not  been  felt.  The  increase  in  earnings  from  the  additions 
should  be  very  material. 

Property  additions  during  1915  are  summarized  as  follows: 
Twenty-four  new  distributing  stations  were  established.  The 
construction  of  a  paraffine  and  lubricating  plant  at  the  Sand 
Springs,  Oklahoma,  Refinery,  was  commenced,  which  will 
have  sufficient  capacity  to  supply  all  of  the  corporation’s 
domestic  and  foreign  lubricating  oil  trade.  An  acid  restoring 
plant  is  under  construction  at  the  Sand  Springs,  Oklahoma, 
Refinery,  which  will  reduce  the  manufacturing  cost.  The 
wharf  at  the  Tampico,  Mexico,  Refinery  was  enlarged  to  in¬ 
crease  the  facilities  for  loading  steamers  and  other  vessels. 
An  addition  to  the  asphalt  plant  at  Tampico,  Mexico,  Re¬ 
finery  was  commenced,  which  will  increase  the  production  of 
asphalt  for  export  and  decrease  the  cost  of  manufacture. 
Work  was  commenced  to  double  the  capacity  of  the  Tam¬ 
pico,  Mexico,  topping  plant  to  meet  the  increased  export  de¬ 
mand  for  gasolene  and  other  products. 

Notwithstanding  the  continued  unsettled  political  condi¬ 
tions  in  Mexico,  the  corporation’s  organization  throughout  the 
Republic  was  maintained,  and  no  property  losses  of  any 
consequence  occurred. 

The  business  of  the  corporation  in  Japan,  China,  the 
Philippines  and  Australia,  which  was  established  in  the  year 
1914,  was  profitably  increased. 

Directors — Henry  Clay  Pierce,  Clay  Arthur  Pierce,  Eben 
Richards,  C.  AV.  Cahoon,  Charles  Hayden,  Wal¬ 
ter  T.  Rosen,  S.  L.  Kamps. 

Officers — Henry  Clay  Pierce,  Chairman. 

Clay  Arthur  Pierce,  President. 

Eben  Richards,  Vice-President. 

C.  AV.  Cahoon,  Vice-President. 

James  H.  Brookmire,  Treasurer  and  Secretary. 

E.  H.  Avery,  Assistant  Treasurer. 

A.  E.  Baker,  Assistant  Treasurer. 

J.  Y.  Duryea,  Assistant  Secretary. 

S.  L.  Kamps,  Assistant  Secretary. 

Finance  Committee — Henry  Clay  Pierce,  Chairman;  Eben 
Richards,  Charles  Hayden,  AValter  T.  Rosen. 

Operating  Committee — H.  Clay  Pierce,  Clay  Arthur  Pierce. 
Eben  Richards,  C.  AV.  Cahoon,  James  H.  Brookmire,  John  L. 
Gray,  T.  F.  Lydon. 

General  Counsel — J.  D.  Johnson. 

Trustees,  Ten-Year  Debentures — Albert  T.  Wiggin,  Chas. 
H.  Sabin,  Moritz  Rosenthal. 

Stock  Transfer  Agent — The  New  York  Trust  Company. 

Stock  Registrar — United  States  Mortgage  and  Trust  Com¬ 
pany  of  New  York. 

Auditors — Price,  Waterhouse  &  Company. 


PIE  RCE-FORDYCE  OIL  ASSOCIATION 

This  is  not  a  corporation,  but  a  partnership,  organized  In 
April,  1910,  to  take  over  the  Texas  properties  of  the  AVaters- 
Pierce  Oil  Company,  which  were  sold  December  7,  1909,  to 
Samuel  W.  Fordyce,  of  St.  Louis,  for  $1,431,741.78,  after  sev¬ 
eral  years  of  anti-trust  litigation  with  the  State  of  Texas,  cul¬ 
minating  in  federal  and  state  receiverships. 

The  principal  members  in  said  partnership  were  Samuel  W. 
Fordyce  (president  of  the  Houston  Oil  Company),  and  H. 
Clay  Pierce  (present  chairman  of  the  Pierce  Oil  Corporation). 


Pierce  Fordyce  Oil  Association 


68 


It  is  reported  that  the  parnership  also  included  the  fol¬ 
lowing: — 

George  W.  Littlefield . Austin,  Texas 

H.  A.  Wire . Austin,  Texas 

Ike  Kempner  . Galveston,  Texas 

Royal  Ferris  . Dallas,  Texas 

J.  J.  Terrell . San  Antonio,  Texas 

J.  S,  Rice . Houston,  Texas 

State  Receiver,  R.  J.  Eckert,  reported  June  30,  1909,  that 
the  Texas  properties  of  the  Waters-Pierce  Oil  Company  were 
w'orth  $1,852,103.37  and  that  net  profits  for  the  five  weeks 
from  April  ,22nd  to  May  31st  were  $70,647,  or  at  the  rate  of 
$734,708  per  annum.  Gross  receipts  for  the  quarter  ending 
June  30th,  1909  were  reported  as  $323,373.  In  August,  1909, 
the  receiver  filed  an  inventory  of  the  Texas  properties  show¬ 
ing  a  total  valuation  of  $1,759,095. 

In  August,  1911,  it  was  announced  that  an  independent 
refinery,  at  Texas  City,  originally  costing  $375,000,  had  been 
purchased  for  $500,000,  and  that  $750,000  would  be  expended 
on  the  plant;  also  that  it  would  be  connected  by  pipe  lines 
with  the  oil  producing  fields  of  Texas.  In  November,  1911, 
it  was  reported  that  a  new  refinery  would  be  constructed 
near  Fort  Worth  at  a  cost  of  between  $1,000,000  and  $2,000,- 
000.  In  1911  the  association  made  an  issue  of  two-year  6 
per  cent,  notes,  but  these  do  not  appear  to  have  come  on 
the  market  to  any  extent  and  later  were  retired. 

At  the  time  of  the  absorption  of  the  Waters-Pierce  Oil 
Company  by  the  Pierce  Oil  Corporation,  it  was  intended  to 
take  over  the  Plerce-Fordyce  Association  but  the  attitude  of 
some  Texas  officials  interfered.  It  is  anticipated  that  this 
matter  will  be  adjusted  satisfactorily. 

The  capital  assets  of  the  association  as  of  December  31, 
1915,  include:  71,966  acres  oil  lands  owned  and  leased;  re¬ 
fineries  located  on  freehold  land  at  Fort  Worth  and  Texas 
City,  Texas,  representing  an  investment  of  $1,370,833.23;  346 
distributing  stations,  consisting  of  warehouses,  storage  tanks, 
etc.,  located  throughout  the  State  of  Texas,  all  of  which  are 
supplied  with  refined  petroleum  and  other  products  from 
their  own  refineries;  407  tank  cars;  777  steel  storage  tanks 
of  various  capacities  up  to  55,000  barrels  each,  located  at 
distributing  stations  and  refineries;  35,361  iron  barrels,  iron 
drums  and  other  steel  delivery  packages. 

The  distributing  stations  are  equipped  to  supply  the  re¬ 
quirements  of  the  trade  in  their  respective  territories  with 
all  products  marketed  by  the  association,  which,  in  addition 
to  refined  oils,  gasolene,  lubricating  oils,  greases  and  other 
petroleum  products,  include  linseed  oil,  turpentine,  animal 
and  vegetable  oils  of  all  kinds,  and  numerous  other  lines 
which  can  be  handled  economically  and  profitably  in  connec¬ 
tion  with  the  petroleum  business. 

Tank  wagons,  motor  trucks  and  other  suitable  equipment 
owned  by  the  association  are  provided  at  all  stations  for 
supplying  the  trade,  not  only  at  the  distributing  stations 
proper,  but  at  all  tributary  points,  it  being  the  policy  of  the 
association  to  extend  the  same  satisfactory  and  economical 
service  to  its  customers  at  the  small  as  well  as  the  large 
towns  throughout  the  entire  State,  and  the  satisfactory  ser¬ 
vice  and  courteous  treatment  given  the  trade  has  had  a 
material  bearing  on  the  holding  of  the  large  volumne  of  busi¬ 
ness  writh  which  the  association  has  been  favored. 

The  association  also  handles  and  markets  in  very  large 
quantities  a  complete  line  of  oil  consuming  devices,  includ¬ 
ing  oil  stoves,  heaters,  lamps,  etc. 

Mexican  crude  oil,  suitable  for  the  manufacture  of  as- 


66 


Pierce  Fordyce  Oil  Association 


phaclts,  road  oils,  etc.,  is  being  imported  through  Texas  City, 
and  satisfactory  progress  is  being  made  in  the  development 
of  a  market  for  these  products. 

The  company’s  earnings  statement  and  balance  sheet  for 
Mie  year  ended  December  31,  1915,  compares  as  follows: — 

Comparative  Income  Accounts 

1915  1914 

Trading  Profits  .  $771,492.65  $177,451.62 

Add:  Interest  Received . .  .  36,910.91 


Deduct:  Miscel.  Expenses,  etc.. 


Deduct:  Interest 


Deduct:  Other  Interest  Charges.. 

/ 

Dedubt:  Losses  on  Account  of 
Storm  and  Flood  at  Texas  City, 
August,  16,  1915 . 

Surplus  for  the  Year . 


$771,492.65 

137,626.00 

$214,362.53 

60,264.87 

$633,866.65 

91,720.27 

$154,097.66 

84,000.00 

$542,146.38 

$  70,097.66 
41,725.03 

$542,146.38 

$  28.372.63 

209,440.80 

$332,705.58 

$  28,372.63 

Comparative  Balance  Sheet,  Dec.  31,  1915  and  1914 


Assets 

Capital  Assets: 

Oil  Lands,  Leaseholds  and  De¬ 
velopment,  Pipe  Lines,  etc.... 
Real  Estate  Occupied  by  Refin¬ 
eries  and  Distributing  Stations, 
Including  Railroad  Leases.... 
Buildings,  Plants  and  Equipment. 


Working  Assets: 

Tank  Cars . 

Stable  and  Garage  Equipment.. 
Iron  Barrels  and  Drums....... 

Drilling  Tools  and  Equipment.  . 
Interest,  Insurance,  etc..  Prepaid 


Current  Assets: 

Inventories  of  Merchandise,  Ma¬ 
terials  and  Supplies . 

Notes  and  Accounts  Receivable.. 
Cash  in  Banks  and  on  Hand... 


Special  Accounts  Receivable: 


Dec.  31,  1915  Dec.  31,  1914 


$ 

206,363.91 

$ 

146,943.39 

616.808.18 

615,657.76 

1 

,909,254.01 

1,901,307.75 

$2 

,732,426.10 

$2,663,908.90 

$ 

409,087.75 

$ 

409.458.37 

98,639,02 

113,771.40 

115,812.47 

118,397.65 

33,648.89 

35,860.31 

21,714.73 

17,872.67 

$ 

678,902.86 

$ 

695,360.40 

$ 

695,740.57 

$ 

690,163.93 

843,241.29 

723,123.74 

56,703.10 

77,591.98 

$1,595,684.96  $1,490,879.65 


Balance  Arising  from  Sale  of 
Mexican  Fuel  Co.  out  of  the 
Proceeds  of  which  a  Distribu¬ 
tion  on  Account  of  Capital  has 
Been  Made  to  the  Holders  of 
the  Certificates  of  Beneficial 

Interest .  $2,257,500.00 


Total  Assets 


$5,007,013.92  $7,107,648.95 


The  Prairie  Oil  &  Gas  Company 


67 


Liabilities  Dec.  31, 1915  Dec.  31, 1914 

Certificates  of  Beneficial  Interest: 

Authorized  . $10,000,000.00  $10,000,000.00 


Outstanding  . 

Less — Distribution  on 
of  Capital  . 

Account 

$  3,602,300.00  $  3,602,300.00 

2.242.431  .lit 

1 

Purchase  Money  Obligations: 

Car  Purchase  Notes . 

$1,359,868.25 

$  25,855.99 

$3,602,300.00 

$  93,837.75 

Current  Liabilities: 

Notes  Payable  . 

Accounts  Payable  and 
Liabilities  . 

Accrued 

$1,475,000.00 

264,641.67 

$1,615,000.00 

186,747.18 

$1,739,641.67 

$1,301,747.18 

Surplus: 

Capital  Surplus  . 

Balance  of  Profit  and  Loss  Acct. 

$  272,062.86 
1,609,585.15 

$  332,884.45 
1,276,879.57 

$1,881,648.01 

$1,609,764.02 

Total  Liabilities 

$5,007,013.92 

$7,107,648.95 

Remarks — Growth  of  the  company’s  earning  power  during 
1915  is  apparent.  The  president  informed  shareholders  that 
business  in  the  current  year  shows  a  large  increase  over 
1915  and  that  there  is  “every  reason  to  anticipate  that  the 
results  for  the  year  1916  will  be  the  most  satisfactory  of 
any  year  since  the  association  was  organized.” 

Board  of  Governors — H.  C.  Pierce,  S.  W.  Fordyce,  S.  W. 

Fordyce,  Jr.,  C.  W.  Cahoon,  W.  C.  Connor,  John 

L.  Gray,  Eben  Richards,  Geo.  W.  Littlefield. 

Officers — Chairman,  H.  Clay  Pierce. 

President,  S.  W.  Fordyce,  Jr. 

Vice-Pres.,  W.  C.  Connor. 

Asst,  to  Chairman,  C.  W.  Cahoon. 

Secretary,  E.  R.  Atwill,  Jr. 

Treasurer,  A.  H.  Reed. 

Asst.  Secretaries  and  Treasurers,  J.  H.  Halliday 
and  T.  W.  Serviss. 

General  Counsel — E.  B.  Perkins,  Dallas,  Tex. 

Office — Praetorian  Building,  Dallas,  Texas. 


THE  PRAIRIE  OIL  &  GAS  COMPANY 

The  Prairie  Oil  &  Gas  Company  was  incorporated  on 
December  15,  1900,  under  the  laws  of  Kansas. 

Capital  Stock — The  authorized  capital  stock  is  $20,000,000, 
of  which  $18,000,000  is  outstanding.  Par  Value,  $100. 

Bonds — On  December  31,  1911,  there  was  $17,000,000  of 
bonded  debt  outstanding,  of  which  $8,000,000  bonds  were 
retired  during  1912,  and  $5,000,000  during  1915,  making  the 
present  amount  oustanding  $4,000,000.  These  are  fifty-year 
debenture  6s,  due  1955  to  I960;  interest  January  and  June  1st. 

The  company  announced  after  the  annual  meeting  on 
December  8,  1914,  that  the  stockholders  had  authorized  the 
working  out  of  plans  to  separate  its  producing  and  transport¬ 
ing  business.  As  a  result,  the  Prairie  Pipe  Line  Company  was 


68 


The  Prairie  Oil  &  Gas  Company 


Incorporated  In  Kansas  with  a  capital  of  $27,000,000,  all  of 
which  was  turned  over  to  the  parent  company  in  exchange 
for  its  pipe  line  properties.  This  stock  was  then  distributed 
to  Prairie  Oil  and  Gas  Company  shareholders. 

Dividends — Since  dissolution,  dividends  have  been  paid  as 
follows:  In  1911,  23  per  cent.;  1912,  25  per  cent.;  1913,  6  per 
cent.;  1914,  (no  dividends);  1915,  150  per  cent,  in  stock  of 
Prairie  Pipe  Line  Co.;  1916,  18  per  cent.;  1917,  Jan.  31,  3  per 
cent,  and  2  per  cent,  extra,  April  30,  3  per  cent,  and  2  per 
cent,  extra. 


The  company  announced  in  May,  1913,  a  suspension  of 
further  dividend  payments  in  order  to  use  earnings  in  pur¬ 
chasing  new  properties  and  developing  its  pipe  line  system. 
Dividends  were  resumed  in  January,  1916,  with  a  3  per  cent, 
distribution  out  of  profits  of  the  last  quarter  of  1916. 

Properties — The  company  has  at  the  present  time  a  total 
production  from  its  own  wells  of  upwards  of  20,000  barrels 
daily.  Its  report  under  the  Oklahoma  gross  production  tax 
showed  a  production  of  8,069,857  barrels  in  that  state  for 
1914.  This  is  at  the  rate  of  22,100  barrels  a  day.  On  Feb¬ 
ruary  15,  1915,  the  last  official  gauge  of  the  Cushing  field 
showed  that  the  company  had  a  daily  output  of  21,295  barrels 
from  76  Bartlesville  sand  wells  and  4,222,000  barrels  of  Cush¬ 
ing  grade  oil  of  its  own  production  in  tankage.  Its  tank 
farms  cover  6,000  acres  of  land  and  its  1,600  steel  storage 
tanks  have  a  capacity  of  50,000,000  barrels.  It  has  built 
since  early  in  1914,  50  additional  steel  tanks  of  55,000  barrels 
capacity  each  near  Cushing,  Oklahoma. 

In  Its  property  return  to  the  State  of  Oklahoma  on  July 
1,  1914,  the  company  stated  that  its  producing  properties  in 
that  state  represented  an  investment  of  $9,814,993;  its  tank¬ 
age,  $6,081,033,  and  oil  in  tankage  $29,729,300. 

During  the  early  part  of  1915,  the  company  purchased  in 
connection  with  the  Carter  Oil  Company,  the  White  and  Sin¬ 
clair  tank  farm  near  Cushing,  a  640  acre  tract  containing  96 
tanks  of  55,000  barrels  capacity,  all  filled  with  Cushing  oil. 
The  Prairie  Company’s  share  was  one-half  the  acreage  with 
72  tanks,  containing  3,900,000  barrels  of  oil. 

In  November,  1916,  the  company  purchased  for  $7,000,000 
the  B.  B.  Jones  properties  in  Cushing  and  adjacent  territory, 
having  a  daily  production  of  G,000  barrels.  One  million  bar¬ 
rels  of  tankage,  filled  with  Cushing  oil,  went  with  the  deal. 
The  company  also  purchased  for  $250,000  1,200  acres  in  the 
Vera  and  Nowata  districts  with  43  producing  wells.  At  the 
Osage  Lease  auction  in  April,  1916,  the  company  acquired  six 
leases.  The  company’s  holdings  in  Oklahoma  and  Kansas 
cover  upwards  of  100,000  acres  of  leases. 

Prairie  Oil  &  Gas  Company’s  financial  report  for  1916 
cqmpares  as  follows: 


Assets: 


1916  1915 


Bills  Receivable 

Realty  . 

Personal  Property  . . 

Merchandise  . 

Cash  . 

Accounts  Receivable 


56,701,673 

3,175,393 

22,934,428 

37,345,391 

5,942,892 

8,359,926 


51,390,725 

15,305,739 

28,490,473 

2,355,395 

25,059,452 


Total  Assets 


$84,459,703  $72,591,784 


Prairie  Pipe  Line  Company 


69 


Liabilities : 

Capital  Stock  . .  . 
Bills  Payable 
Accounts  Payable 

Bonds  . 

Surplus  . 


$18,000,000 

3,000,000 

12,362,570 

4,000,000 

47,197,133 


$18,000,000 


15,999,405 

4,000,000 

34,592,579 


Total  Liabilities .  $84,459,703  $72,391,784 

The  increase  to  surplus  after  $3,240,000  paid  out  in  divi¬ 
dends  indicates  earnings  at  the  rate  of  88  per  cent,  after  all 
adjustments.  The  increase  of  more  than  $7,000,000  in  per¬ 
sonal  property  (oil  leases)  is  due  to  the  purchase  of  the 
B.  B.  Jones  acreage  at  Cushing  last  November  and  the  com¬ 
pany’s  heavy  investments  in  the  fields  in  Butler  county,  Kan. 

Because  of  the  segregation  of  the  company’s  pipe  line 
properties  in  January,  1915,  it  is  difficult  to  make  a  compara¬ 
tive  table  illustrating  the  company’s  growth  over  the  five- 
year  period.  However,  on  December  31,  1911,  the  company 
had  het  assets  of  $36,915,175  while  on  December  31,  1916, 
net  assets  were  $65,197,133,  despite  the  withdrawal  of  pipe 
line  assets.  The  company  enjoyed  a  record-breaking  year 
and  with  the  current  demand  and  prevailing  high  prices  for 
Mid-Continent  oil,  it  seems  assured  of  even  larger  earnings 
throughout  1917. 

Officers — President — J.  E.  O'Neill. 

Vice-Presidents — Nelson  K.  Moody  and  W.  9. 

Fitzpatrick. 

Treasurer — E.  T.  Patterson. 

Secretary — John  T.  Hallihan. 

Directors — The  above-named  officers. 

Transfer  Office — Independence,  Kansas. 

Annual  Meeting — December  14,  1916. 


PRAIRIE  PIPE  LINE  COMPANY 

The  Prairie  Pipe  Line  Company  was  incorporated  January 
14,  1915,  under  the  laws  of  Kansas  to  take  over  the  trans¬ 
portation  business  and  the  equipment  incident  thereto  of  the 
Prairie  Oil  and  Gas  Company. 

Capitalization — $27,000,000.  Par  value,  $100. 

The  stock  was  distributed  pro  rata  among  the  holders 
of  the  $18,000,000  outstanding  capital  stock  of  the  Prairie 
Oil  and  Gas  Company. 

Dividends — 1916,  January  15,  5  per  cent.;  April  29,  f>  per 
cent,  and  5  per  cent,  extra;  July  31,  £  per  cent,  and  5  per 

cent,  extra;  Oct.  31,  5  per  cent,  and  5  per  cent,  extra;  1917, 
Jan.  31,  5  per  cent,  and  5  per  cent,  extra;  April  30,  5  per 
cent,  and  5  per  cent,  extra. 

Business — The  company  a<?ts  as  a  common  carrier  of 
crude  eil  in  the  States  of  Kansas,  Oklahoma,  Arkansas, 
Missouri  and  Illinois,  through  whieh  its  vast  network  of 
gathering  and  trunk  delivery  lines  extend  and  which  furnish 
in  connection  with  other  pipe  line  systems,  the  largest  outlet 
for  Mid-Continent  oil  to  the  Atlantic  seaboard  and  Gulf 
ports. 

Being  a  public  utility  corporation  engaged  solely  in  trans¬ 
portation,  the  company  does  not  act  as  a  purchaser  or 
marketer  of  crude  oil. 

Properties — The  transportation  system  of  this  company 
is  the  largest  in  the  industry.  Briefly  stated,  it  operates 
5,090  miles  of  gathering  and  trunk  lines,  2.000  miles  of  pri- 


7« 


Prairie  Pipe  Line  Company 


vate  telegraph  and  telephone  lines,  23  main  pumping  stations 
and  60  field  pumping  stations.  Its  gathering  lines  are  con¬ 
nected  with  4,000  producing  leases  and  about  16,000  producing 
wells  in  Oklahoma  and  Kansas. 

The  capacity  oi  its  gathering  equipment  is  170,000  barrels 
a  day  and  its  trunk  line  system  can  deliver  165,000  barrels 
a  day.  In  order  to  expand  its  facilities  the  company  has 
expended  between  $3,500,000  and  $5,000,000  in  laying  325 
miles  of  eight-inch  and  twelve-inch  pipe  to  loop  its  delivery 
lines  from  the  Cushing  held  to  Carrolltown,  Mo.,  and  to 
double  its  trunk  line  form  Carrolltown  to  Wood  River,  Ill. 
With  the  completion  of  these  improvements,  during  1015,  it  is 
able  to  deliver  100,000  barrels  a  day  for  points  east  of  the 
Mississippi  River.  During  1916,  the  company  eempleted  an 
8-inch  line  from  the  new  Augusta  and  El  Dorado  pools  in 
Butler  County,  Kansas,  to  Neodesha,  Kansas,  and  is  building 
a  second  8-inch  line  to  take  care  of  the  mounting  production 
of  the  district.  The  company  also  is  building  80  miles  of 
eight-inch  line  from  its  Jonesburg  Station  in  Chautauqua 
County,  Kansas,  to  the  Blackwell  Pool  in  Kay  County,  Okla. 

The  bulk  of  the  Eastbound  traffic  goes  in  the  company's 
own  lines  to  the  Standard  Oil  Company  of  Indiana’s  refin¬ 
eries,  at  Whiting,  Indiana,  and  Wood  River,  Illinois.  Other 
shipments,  according  to  tariffs  on  file  with  the  Interstate 
Commerce  Commission,  go  via  the  Indiana,  Buckeye  and 
International  Pipe  Bines  to  the  Imperial  Oil  Company,  Ltd., 
refinery  at  Sarania,  Ont. ;  via  Indiana,  Buckeye,  National 
Transit,  New  York  Transit  and  Northern  pipe  lines  to  re¬ 
fineries  at  New  York  harbor,  Philadelphia,  Baltimore  and 
Pittsburgh;  via  Illinois  Pipe  Line,  Indiana  and  Buckeye  pipe 
lines  to  refineries  at  Lima,  Ohio,  Toledo,  and  Cleveland.  If 
the  Tidewater  Pipe  Line  carries  out  its  reported  intention  to 
extend  its  transcontinental  line  from  Stoy,  Ill.,  to  Wood 
River,  the  Prairie  lines  will  have  another  avenue  otf  delivery 
to  the  Atlantic  seaboard. 

To  the  South,  the  company  is  able  to  deliver  35,000  bar¬ 
rels  a  day  to  the  Standard  Oil  Company  of  Louisiana  refinery 
at  Baton  Rouge,  La.,  via  the  Oklahoma  Pipe  Line  and  the 
Standard  Oil  of  Louisiana’s  pipe  line. 

In  its  tax  return  to  the  State  of  Oklahoma,  on  July  1, 
1914,  Prairie  Oil  and  Gas  Company  reported  an  investment 
of  $4,647,744  in  pipe  line  equipment  in  Oklahoma  and  $21,- 

318,669  outside  of  the  State.  Eighteen  months  later  these 
properties  were  turned  over  to  the  Prairie  Pipe  Lin*  Com¬ 
pany  for  $27,000,000  in  stock. 

With  the  certainty  that  Oklahoma  has  become  the  prin¬ 
cipal  source  of  supply  for  the  great  refining  groups  of  the 
Mid-Continent  and  the  Atlantic  seaboard,  it  is  worth  w'hile 
noting  the  expansion  of  traffic  on  this  system  in  the  last 


ears: 

Runs 

Deliveries 

(Barrels) 

(Barrels) 

1917  (3  months)  .  .  . 

10.055.000 

11,898,407 

1916 . 

.  .  35,850,450 

43,840,962 

1915 . 

.  .  32,136,560 

43,490,023 

1914 . 

.  .  40,360,858 

39,268,292 

1913 . 

.  .  37,840,240 

34,850,953 

1912 . 

.  .  30,870,203 

33,068,504 

Prairie  Pipe  Line  Company’s  financial  statement  f«r  191* 
•ompares  as  follows: 


Frairie  Pipe  line  Compa»y 


71 


Assets : 

Real  Estate . 

Bills  Receivable  .  .  . . 
Personal  Property  .  . 
Due  from  Banks.  .  .  . 
Ao-eounts  Receivable 


1916 

$96,067 

3,000,214 

33,722,550 

4,761,245 

2,260,130 


1915 

$96,050 

5,000,214 

29,195,911 

5,421,77# 

2,675,825 


Total  Assets 


$43,840,206  $4#,SS8,776 


Liabilities : 

Capital  Stock  . 

Accounts  Payable  . .  . 
Accrued  Depreciation 
Tax  Reserve  Account, 
Surplus  . 


$27,000,000 

641,835 

2,554,537 

362,290 

13,281,544 


$27,600,00# 

348,358 

1,241,677 


11,798,741 


Total  Liabilities . .  $43,840,206  $46,388,776 

The  company  furnishes  no  income  account,  but  the  in¬ 
crease  to  surplus  of  $1,482,670  after  distributing  $9,450,000  in 
dividends  shows  net  profits  after  depreciation  and  adjustment 
otf  $10,932,670,  which  equals  40.5  per  cent.  The  fact  that  the 
company’s  plant  account  increased  more  than  four  and  a 
kalf  million  dollars  during  the  year  without  any  correspond¬ 
ing  decrease  in  cash  assets  would  indicate  that  adjustments 
before  accounting  for  net  profits  were  quite  heavy. 

Under  the  recent  decision  of  the  Supreme  Court,  making 
ail  interstate  pipe  lines  common  carriers,  the  company  has 
filed  with  the  Interstate  Commerce  Commission  its  schedules 
of  rates.  From  Oklahoma  to  Cleveland,  Ohio,  via  the  Ohio 
Oil  Company  and  the  Buckeye  Pipe  Line  or  via  the  Indiana 
Pipe  Line  and  the  Buckeye  Pipe  Line,  the  rate  is  5S  cents 
a  barrel,  plus  a  gathering  charge  of  12  cents.  To  New  York, 
Philadelphia  or  Pittsburg,  via  the  same  lines  and  eastern 
connection,  the  rate  is  70  cents  a  barrel.  This  covers  a  haufl 
of  approximately  1,200  miles. 

Officers — President,  William  F.  Gates, 

Vice-President,  Clark  F.  Kountz. 

Treasurer,  F.  N.  Wilhelm. 

Secretary,  R.  G.  Hare. 

Directors — The  above  and  George  Coyle,  of  Tulsa,  Okla. 

Transfer  Office — Independence.  Kansas. 

Annual  Meeting — March  6,  1916. 


THE  SOLAR  REFINING  COMPANY 

The  Solar  Refining  Company  was  incorporated  in  1886 
under  the  laws  of  Ohio. 

Capital  Stock — $2,000,000;  par  value,  $10.  The  •Rpital 
stock  was  $500,000.  On  June  16,  1913,  the  stockholders  rati¬ 
fied  the  proposal  to  increase  the  capital  to  $2,000,000  by  a 
300  per  cent,  stock  dividend,  which  was  distributed  June  30. 

Dividends — Since  the  dissolution^l912,  December  20th,  20 
per  cent.;  1913,  June  30th,  20  per  cent.;  December  20th,  semi¬ 
annual  dividend  of  5  per  cent,  and  30  per  cent,  extra;  1914, 
June  20th,  5  per  cent.;  December  20th,  5  per  cent.;  1915,  June 
21st,  5  per  cent.;  Dec.  20th,  5  per  cent;  1916,  June  30th, 
i  per  cent.,  Dec.  20,  5  per  cent. 

Properties — This  company  owns  a  refinery  at  Lima,  Ohio, 
which  is  complete  in  all  its  branches,  manufacturing  some 
specialties.  The  plant  has  a  maximum  capacity  of  about 
10,000  barrels  per  day.  It  has  pipe  line  connections  with  the 
Buckeye  Pipe  Line  Company  and  the  Illinois  Pipe  Line. 

It  is  reported  that  the  company  owns  about  280  acre*  of 


The  Solar  Refining  Company 


plant  land  and  that  It  employs  about  500  men.  The  plant 
Is  In  good  repair  and  the  management  is  able,  active  and 

progressive.  The  company  expended  $200,000  in  1914  in  an 
addition  to  its  refinery  of  ten  pressure  stills  for  the  manu¬ 
facture  of  motor  spirit  under  the  Burton  patent. 

Late  in  1915,  the  company  announced  that  it  would  spend 
$1,000,000  in  expanding  its  refinery  capacity  by  constructing 
a«  additional  battery  of  30  Burton  stills  and  a  new  power 
and  boiler  house.  These  improvements,  which  only  recently 
have  been  completed,  will  increase  the  company’s  output  and 
earning  capacity  50  per  cent,  and  will  call  for  300  additional 
employees. 

The  company  distributes  the  greater  part  of  its  products 
iw  the  States  of  Ohio,  Kentucky,  Indiana  and  Michigan. 

Financial  Statement — The  financial  statement  for  1916 
compares  as  follows: — 


Earnings  Statement 


Profit  for  Year 
Less  Dividends 


Carried  to  Surplus 
Assets : 

Real  Estate  . 


Balance  Sheet 


Plant  . 

Incomplete  Construction  . 

Less  Depreciation  . 

Plant  after  Depreciation . 

Inventories  . 

Insurance  Reserve  (Invested) 

Accounts  Receivable  . 

Cash  and  Other  Investments 


Total  Assets  . 
Liabilities : 
Capital  Stock  .  .  . 
Accounts  Payable 
Surplus  . 


1916 

$1,104,601 

200,000 

1915 

$353,906 

200,000 

$904,601 

$153,906 

1916 

$60,457 

1915 

$60,457 

$2,732,082 

290,115 

1,687,564 

$2,587,040 

1,637,912 

$1,334,633 

1,028,155 

240,843 

230,680 

1,698,458 

$949,129 

840,055 

241,319 

424,544 

1,064,461 

$4,593,226 

$3,597,965 

$2,000,000 

341,427 

2,251,799 

$2,000,000 

232,766 

1,347,199 

Total  Liabilities  .  $4,593,226  $3,597,965 

Net  profits  were  at  the  rate  of  55.23  per  cent,  compared 
with  17.69  per  cent,  in  1915  and  a  deficit  in  1914.  The  com¬ 
pany  has  increased  its  net  cash  assets  by  about  $500,000  and 
plant  investment  after  depreciation  reveals  a  gain  of  $385,504 
showing  that  the  company  is  adding  continually  to  its  re¬ 
fining  capacity.  The  size  of  the  company’s  surplus  and  its 
easy  cash  position  would  indicate  the  possibility  of  a  stock 
dividend  or  the  resumption  of  a  liberal  dividend  policy 
daring  1917. 

The  most  interesting  feature  of  this  company’s  develop¬ 
ment  since  the  dissolution  has  been  the  steady  increase  is 
its  Plant  Account,  which  may  be  illustrated  as  follows: — 

Plant  Accrued 

Investment  Depreciation  Net  Plant 


1916 .  $3,022,197  $1,687,564  $1,334,632 

1915 .  2.587,040  1,637,912  949,128 

1914 .  2,500,499  1,562,398  938,101 

1913 .  2,306,761  1,507,010  799,751 

1912 . 2,272,769  1,450,930  821,839 


Iacr*a»»  1912—1916.... 


$749,428 


$236,634 


$512,693 


Southern  Pipe  Pine  Company 


73 


Net  assets  of  the  company  at  Dec.  31,  1916,  were  $4,251,799 
which  compares  with  net  assets  of  $3,705,190  at  Dec.  31,  1906. 
Officers  and  Directors — President — J.  G.  Neubauer. 

Vice-President — F.  T.  Cuthbert. 

2nd  V.-P.  &  Treas. — F.  G.  Borges. 
Secretary — N.  D.  Keys. 

Gen.  Supt. — J.  W.  McCarthy. 
Transfer  Office — Lima,  Ohio. 

Annual  Meeting — First  Wednesday  in  January. 


SOUTHERN  PIPE  LINE  COMPANY 

The  Southern  Pipe  Line  Company  was  incorporated  in  1890 
under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  was  $5,000,00$,  but  it 
was  increased  to  $10,000,000  in  1906.  Par  value,  $100. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  payable  as  follows:  1912.  28  per  cent.;  1913,  32  per 
cent.;  1914,  3ft  per  cent.;  1915,  24  per  cent.;  1916,  24  per 
cent.;  1917,  March  1,  6  per  cent.,  June  1,  6  per  cent. 

Properties — The  company  owns  and  operates  1,130  miles 
of  pipe  line  and  four  pumping  stations  and  owns  1,179,323 
barrels  of  iron  tankage. 

The  main  line  is  261  miles  long,  extending  from  Fayette 
County,  Pa.,  from  a  point  on  the  Pennsylvania-West  Virginia 
State  Line,  about  twelve  miles  northeast  of  Morgantown,  via 
Watson,  State  Line,  Knepper  and  Millway,  to  Philadelphia. 
It  embraces  541  miles  of  8-inch  pipe  and  578  miles  of  6-inch 
pipe. 

Oil  is  received  at  the  western  terminus  from  The  Eureka 
Pipe  Line  Company,  which  is  delivered  to  refineries  at  Phila¬ 
delphia  and  to  the  National  Transit  Company  at  Millway. 
Oil  is  received  also  from  the  National  Transit  Company  at 
Millway.  The  company  has  no  gathering  lines. 

Traffic — Business  of  these  lines  for  the  past  five  years  has 
been  as  follows; 

Operations  Oil  In 

Other  Receipts  Deliveries  Tankage 


1917  (3  mos.)  .  .  .  3,724,991  3,616,018  523,416 

1916 .  14,841.634  15,021,793  476,342 

1915 .  12,007,811  12,268,015  . 

1914 .  12,288,691  11,890,943  710,731 

1913 .  17,489,806  17,367,896  681,649 

1912 .  20,598,159  20,619,580  573,740 


The  financial  statement  of  this  company  for  1916,  com 
pared  with  that  of  the  previous  year,  is  as  follows: — 


1916  1915 

♦  Net  Profits  .  $2,354,371  $1,966,756 

Dividends  .  2,399,998  2,399,998 


Deficit  . • .  $45,627  $433,242 


♦Equal  to  23.54  per  cent, 
stock  against  19.66  per 

Assets: 

Plant  . 

Other  Investments  . 

Accounts  Receivable  . 

Cash  . 


earned  on  $10,000,000  capital 
cent,  in  1915. 


1916  1915 

$5,948,315  $5,904,502 

7,097,296  6,927,856 

333,151  228,163 

367,489  551,203 


Total  Assets 


$13,746,252  $13,611,724 


74 


Southern  Pipe  Line  Company 


Liabilities : 

Capital  Stock  . 

Reserve  Depreciation  . 

Accounts  Payable  . 

Profit  and  Loss  Surplus 


$10, 000, 00* 
1,141,431 
13,733 
2,591,080 


$16,000, 000 
971,861 
3,147 
*,636,716 


Total  Liabilities 


$13,746,252  $13,611,724 


The  company  failed  to  earn  its  dividend  by  %  per  cent, 
in  1916,  but  shows  a  growth  of  4  per  cent,  in  earnings  above 
1915.  This  deficit  is  only  technical,  however,  as  the  com¬ 
pany’s  net  cash  assets  increased  $78,129  and  Plant  Account 
increased  $43,813  after  charging  $169,570  to  depreciation. 
With  net  cash  assets  of  $7,782,204,  there  is  little  likelihood 
of  the  company  reducing  its  dividend  rate.  The  book  value 
of  the  stock  is  $125.91  a  share  of  which  $77.18  represents 
cash  assets. 


The  company’s  development  since  the  dissolution  i a  set 
forth  comparatively  as  follows: — 


Net  Profits 

Ratio 

Plant  In¬ 
vestment 

Depre¬ 

ciation 

Surplus 

1916 . 

.  .  .  $2,354,371 

23.54% 

$48,813 

$169,570 

$2,591,089 

1915 . 

1,966,756 

19.66% 

17.373 

168,980 

2,636,716 

1914 . 

2,528,883 

25.28% 

7,049 

85,550 

3,069,958 

1913 . 

3,743,658 

37.43% 

40,154 

177,571 

3,541,084 

1912 . 

3,810,450 

38.10% 

*539,760 

*,997,422 

*Accrued  depreciation  to  Dec.  31,  1912. 

It  is  apparent  that  the  reduction  in  pipe  line  rates  af¬ 
fected  the  company’s  high  earning  power  but  a  liberal  divi¬ 
dend  policy  has  been  maintained  because  of  the  company’s 
large  cash  resources,  which  amounted  to  $77.82  a  share  at 
the  close  of  1916.  On  Dec.  31,  1906,  the  company  had  net 
assets  of  $11,020,160  against  net  assets  of  $12,591,090  at  the 
close  of  1916. 

Directors — Forrest  M.  Towl,  J.  W.  Vand-ergrtft,  C.  E. 

Loane,  C.  A.  McLouth,  H.  C.  Dorwertk. 

Officers — President — Forrest  M.  Towl. 

Vice-President  and  Gen.  Mgr. — J.  W.  ^aw&ergrlft. 

Vice-Preeident — J.  H.  Baker. 

Secretary  and  Treasurer — E.  R.  Shepard. 

Asst.  Secretary  and  Treasurer — C.  K.  Loane. 

Transfer  Office — No.  210  Seneca  Street,  Oil  City,  Penna. 


SOUTH  PENN  OIL  COMPANY 

The  South  Penn  Oil  Company  was  incorporated  in  1*88, 
wader  the  laws  of  Pennsylvania.  The  company  acquired  con¬ 
trol  of  the  Penn-Mex.  Fuel  Company  in  1912  by  obtaining  51 
per  cent,  of  it*  $10,000,000  capital  stock. 

Capital  Stock — The  capital  stock  is  $20,000,000.  Par  value, 
$100,  having  been  increased  from  $2,500,000  to  $12,500,000 
and  then  to  the  present  figure.  On  May  1,  1913,  the  stock¬ 
holders  at  a  special  meeting  voted  to  increase  the  capital 
stock  from  $2,500,000  to  $12,500,000.  75,000  shares  were  dis¬ 

tributed  pro  rata  as  a  stock  dividend  of  300  per  cent.  o» 
July  31,  1913,  and  the  balance  of  25,000  shares  were  offered 
to  the  stockholders  for  subscription  at  par  until  the  same 
date.  On  February  14,  1917,  the  shareholders  voted  to  in¬ 
crease  the  capital  to  $20,000,000,  which  was  done  by  a  6» 
per  cent,  stock  dividend  distributed  on  Mareh  16,  1917,  t* 
stock  of  record  February  14. 


South  Penn  Oil  Company 


75 


Dividends — Since  the  dissolution,  dividends  have  been  pay¬ 
able  as  follows:  1912,  June  15th,  10  per  cent.;  September  14th, 
10  per  cent.;  December  14th,  10  per  cent.;  1913,  March  31st, 
10  per  cent.;  June  30th,  10  per  cent.;  July  31st,  300  per  cent, 
stock  dividend,  and  “rights,”  100  per  cent.;  September  30th, 
3  per  cent,  (on  new  capitalization);  December  31st,  3  per  cent, 
and  2  per  cent,  extra;  1914,  March  31st,  3  per  cent,  and  2  per 
cent,  extra;  June  30th,  3  per  cent,  and  2  per  cent,  extra; 
1915,  March  31st,  3  per  cent.;  June  30th,  3  per  cent.;  Septem¬ 
ber  30th,  3  per  cent.;  December  30th,  3  per  cent,  and  2  per 
cent,  extra;  1916,  March  31,  5  per  cent.;  June  30,  5  per  cent, 
and  3  per  cent,  extra,  September  30,  6  per  cent,  and  3  per 
cent,  extra,  December  30,  5  per  cent,  and  6  per  cent,  extra; 
1917,  March  15,  60  per  cent,  stock  dividend,  March  31,  5  per 
•ent.  (on  new  capitalization). 

No  dividends  were  paid  in  the  second  half  of  1914. 

Properties — The  company  is  the  largest  producer  of  high 
grade  Pennsylvania  oil.  It  owns  about  10,000  wells  in  the 
Appalachian  Field,  extending  through  western  New  York, 
western  Pennsylvania  and  West  Virginia,  having  a  daily  pro¬ 
duction  of  approximately  12,000  barrels.  Its  leases  cover 
about  1,500,000  acres  of  lands,  and  those  actively  operated 
comprises  about  300,000  acres,  while  it  is  estimated  that  more 
than  600,000  acres  of  its  leased  land  is  semi-tested  territory. 
The  company  also  controls  the  New  Domain  Oil  and  Gas 
•ompany  which  is  active  in  the  Kentucky  fields. 

Many  of  the  company’s  old  wells  are  small  pumpers,  which 
it  does  not  operate  unless  the  price  of  crude  justifies  doing  so. 
At  the  present  time  the  company  has  a  production  of  several 
hundred  barrels  a  day  from  wells  yielding  from  one-half  to 
one  barrel  of  oil  daily  under  the  pump. 

The  company  also  purchases  from  the  producers  all  the 
oil  run  direct  from  the  wells  by  the  New  York  Transit  Corn- 
pan,  National  Transit  Company,  South  West  Penna.  Pipe 
Lines  and  Eureka  Pipe  Line.  The  company  receives  a  broker¬ 
age  commission  of  5  cents  a  barrel  for  acting  as  purchasing 
agent. 

South  Penn  Oil  Company’s  financial  statement  for  1916 
compares  as  follows: 

1916  1915  1914 

Gain  for  Year .  $4,745,089  $5,314,150  *$2,315,220 

Dividends  .  4,000,000  1,750,000  1,250,000 


Balance  to  Surplus .  $745,089  $3,564,150  *$3,465,220 

♦Deficit. 

Earnings  were  at  the  rate  of  37.9  per  cent,  compared  with 
42.5  per  cent,  in  1915. 


Comparative  Balance  Sheet 


Assets : 

Plant  . . 

Stock  Held  . 

Materials  and  Merchandise. 

Cash  and  Oil  on  Hand . 

Notes,  Bonds  and  Mortgages 
Accounts  Receivable . 


1916  1915 

$11,224,681  $10,819,102 


5,444,738 

1,298,044 

4,349,193 

2,600,000 

302,461 


5,441,138 

1,400,999 

4,343,325 

2,428,671 

284,498 


1914 

$11,436,584 

710,000 

1,176,574 

5,206,699 

2,260,000 

189,992 


Total  Assets. 


$25,219,117  $24,717,732  $20,979,809 


76 


South  Penn  Oil  Company 


liabilities : 

Capital  Stock . $12,500,000  $12,500,000  $12,500,000 

Accounts  Payable .  329,710  573,414  399,641 

Profit  and  Loss  Surplus .  12,389,407  11,644,318  8,080,168 


Total  Liabilities . $25,219,117  $24,717,732  $20,979,809 

The  company’s  gain  for  1916  is  stated  as  less  than  for 
1915,  although  it  is  significant  that  net  profits  of  the  prior 
year  appeared  in  the  balance  sheet  principally  through  an 
appreciation  in  the  value  of  its  51  per  cent,  stockholding  in 
the  Penn  Mex.  I^uel  Company.  During  1916  the  bulk  of  the 
company’s  profits  were  distributed  in  dividends.  The  com¬ 
pany’s  investment  during  1916  in  new  producing  properties 
is  indicated  by  an  increase  in  plant  account  of  $405,579  after 
depreciation. 


The  company's  growth  since  the  Dissolution  is  shown  com¬ 
paratively  as  follows: — 


Earnings 

Dividends 

Capital 

Assess 

Net  Current 
Assets 

1916 . 

.  .  .  $4,745,089 

$4,000,000 

$16,669,419 

$8,219,988 

1915 . 

1,750,000 

16,260,240 

7,884,079 

1914 . 

1,250,000 

12,146,584 

8,433,524 

1913 . 

6,637,702 

f  1,500,000 
•{  7,500,000 

13,721,539 

10,323,846 

1912 . 

L  (Stk.  Div.) 
750,000 

12,084,228 

4,324,058 

From  the  Dissolution  at  the  close  of  1912  to  April  1, 
1917,  the  company  has  distributed  to  its  shareholders,  $10,- 
250,000  in  cash,  $15,000,000  in  stock  and  subscription  rights 
at  par  to  $2,500,000  of  stock,  which  attained  a  subsequent 
market  value  of  $15,000,000.  The  progress  of  the  company, 
despite  the  depletion  of  the  Appalachian  Fields,  is  shown  by 
the  fact  that  net  assets  on  December  31,  1896,  were  $11,758,- 
003;  on  December  31,  1906,  $14,915,185  and  on  December  31, 
1916,  $24,889,407. 

Officers — President — Joseph  Seep. 

Vice-President — E.  E.  Crocker. 

Secretary — R.  W.  Cummins. 

Treasurer — S.  G.  Hartman. 

Directors — The  above-mentioned  officers  in  addition  to 
J.  L.  McKinney  and  P.  H.  Curry. 

Transfer  Office — No.  424  Sixth  Avenue,  Pittsburg,  Pa. 


SOUTH  WEST  PENNSYLVANIA  PIPE  LINES 

The  South  West  Pennsylvania  Pipe  Lines  was  incorporated 
in  1885  under  the  laws  of  Pennsylvania. 

Capital  Stock — The  capital  stock  is  $3,500,000.  Par  value. 

$100. 

Dividends — Since  the  Dissolution,  dividends  have  been  de¬ 
clared,  payable  as  follows:  1912,  20  per  cent.;  1913,  20  per 
cent.;  1914,  16  per  cent.:  1915.  12  per  cent.;  1916,  12  per 
cent.;  1917,  April  2,  3  per  cent.  (Q). 

Properties — The  company  owns  and  operates  1,646  miles 
of  pipe  lines  of  various  sizes  from  2-inch  to  12-inch  pipe,  of 
which  the  trunk  lines  embrace  100  miles  of  8-inch,  271  miles 
of  6-Inch,  39  miles  of  5-inch,  and  12  miles  of  4-inch  pipe. 
There  are  three  trunk  line  pumping  stations  and  thirty-three 
local  pumping  stations.  The  company  also  owns  1,472,000 
barrels  of  iron  tankage. 


South  West  Penn  Pipe  Lines 


77 


Oil  is  received  from  The  Buckeye  Pipe  Line  Company  at 
various  points  on  the  Ohio-  Pennsylvania  boundary  line;  from 

the  Eureka  Pipe  Line  Co.  at  points  on  the  West  Vlrginia- 
Pennsylvanta  fetate  line,  chielly  coming  from  Littleton, 
Downs,  Morgantown  and  Brice;  from  the  National  Transit 
Company  at  Nedskey  and  from  the  Tusoarora  Oil  Company  at 
Cooks  Ferry. 

The  producing  field  in  Pennsylvania  from  which  oil  is  re¬ 
ceived  extends  from  the  Northern  boundary  of  Beaver  and 
Allegheny  Counties  to  the  western  and  southenn  lines  of 
Pennsylvania  and  east  to  the  Menongahela  River.  Most  of 
the  oil  transported  is  received  from  and  delivered  to  other 
transporting  companies. 


Traffic — Business  over  these  lines  for  the  last  five  years 


has  been  as  follows; — 

Other  Receipts  Runs  Deliveries 


(Barrels) 
1917  (S  mos. )  3,257,676 


1916 .  12,991,915 

1916 _ ...  10,584,530 

1914 .  9,185,864 

1913 .  13,300,253 

1913 .  14,202,960 


(Barrels)  (Barrels) 

357,382  3,547,514 

1,276,031  14,378,994 

1,200,727  12,549,583 

1,385,119  10,506,968 

1,340,515  14,638,052 

1,456,436  16,106,403 


Oil  in 
Tankage 

(Barrels) 


607,350 

730,607 

688,800 

522,506 


The  financial  statement  of  this  company  for  1916  com¬ 
pares  with  the  previous  year  as  follows: 


*Net  Profit 
Dividends 

Surplus 


♦Equal  to  13.04  per  cent,  earned 
stock  against  9.90  per  cent,  in 
tDeficit. 

Assets; 

Plant  . 

Other  Investments  . 

Accounts  Receivable  . 

Cash  . . 

Total  Assets  . 

Liabilities : 

Capital  Stock  . * . 

Reserve  Depreciation  . 

Accounts  Payable  . 

Oil  Purch.  &  Sale  Contingent . 

Profit  and  Loss  Surplus . 

0 


1916  1915 


$456,358 

419,999 

$346,453 

419,999 

$36,359 

f$73,546 

on  $3,500,000  capital 
1915. 

1916 

1915 

$3,936,037 

1,219,891 

116,529 

218,833 

$3,929,646 

985,329 

135,237 

146,391 

$5,491,290 

$5,196,603 

$3,500,000 

750,782 

74,157 

117,000 

1,049,350 

$3,500,000 

643,754 

39,858 

1,012,991 

Total  Liabilities 


$5,491,290  $5,196,603 


During  1916  this  company  showed  a  slight  surplus  over 
its  12  per  cent,  dividend  requirements  whereas  in  1915  a 
deficit  was  reported.  The  company’s  trunk  line  business 
showed  a  substantial  gain  during  the  past  year,  but  its  gath¬ 
ering  line  business  was  practically  unchanged.  The  balance 
sheet  shows  little  change  in  the  company’s  financial  condi¬ 
tion,  although  its  investments  were  increased  from  $985,329 
to  $1,219,891  and  the  cash  account  shows  a  gain  from  $146,391 
to  $218,833.  The  hook  value  of  the  stock  is  $129.97  a  share, 
of  which  $42.25  represents  cash  assets. 


78 


Standard  Oil  Company  of  New  Jersey 


Since  the  Dissolution,  the  company’s  progress  is  show* 
comparatively  as  follows: — 

Additions  Depre- 

Earnings  Ratio  to  Plant  ciation  Surplus 


1916 .  $456,358  13.04%  $6,391  $107,028  $1,049,356 

1915 .  346,453  9.90%  *23,291  106,815  1,012,991 

1914 .  406,359  11.60%  41  70,387  1,086,537 

1913 .  806,227  23.03%  9,623  125,505  1,240,179 

1912 .  967,661  27.90%  _  f341,047  1,133,954 

*Deficit.  tAccrued  to  December  31,  1912. 


The  effect  of  reduced  rates  on  the  company’s  earnings  is 
apparent  but  a  conservative  dividend  policy  has  kept  the 
surplus  unimpaired,  and  its  cash  position  strong.  Net  as¬ 
sets  on  December  31,  1916,  were  $4, 549, 350  against  net  assets 
©f  $3,453,384  on  December  31,  1906. 

Directors — Forrest  M.  Towl,  E.  G.  Wright,  E.  R.  Shepard, 

V.  S.  Swisher,  J.  F.  Connors. 

Officers — President — Forrest  M.  Towl. 

Vice-President  and  Gen.  Mgr. — E.  CL  Wright. 

Vice-Pi-esidemt — V.  S.  Swisher. 

Secretary  and  Treasurer — E.  R.  Shepard. 

Assistant  Treasurer — C.  A.  McLouth. 

Transfer  Office — 210  Seneca  Street,  Oil  City,  Pennsylvania. 


STANDARD  OIL  COMPANY  of  New  Jersey 

(Reorganized  Company) 

In  accordance  with  the  decision  of  the  United  State* 
Supreme  Court  rendered  on  May  15,  1911,  the  Standard  Oil 
Company  of  New  Jersey  divested  itself  of  the  control  ©1 
thirty-three  subsidiary  companies  which  previously  had  been 
closely  affiliated  through  co-ordinate  trade  relations. 

Capital  Stock — The  capital  stock  of  the  re-organized  com¬ 
pany  is  $100,000,000,  of  which  $98,338,300  is  outstanding.  Par 
value,  $100. 

Dividends — Since  re-organization,  dividends  have  been  de¬ 
clared  and  paid  as  follows:  1911,  December  15,  7  per  cent.; 
1912,  20  per  cent,  and  an  extra  cash  disbursement  of  40  per 
cent.;  1913,  20  per  cent.;  1914,  20  per  cent.;  1915,  '20  per 
eent. ;  1916,  2©  per  cent.;  1917,  March  15,  5  per  cent,  (Q). 

The  special  distribution  of  $40  per  share  resulted  from  the 
accumulation  of  funds  due  to  the  settlement  of  loans  made 
to  the  various  former  subsidiaries  prior  to  dissolution. 

Properties — By  virtue  of  the  broad  character  of  its  charter, 
the  Standard  Oil  Company  of  New  Jersey  is  naturally  a  hold¬ 
ing  company,  while  its  diversified  functions  In  operations  con¬ 
stitute  it  a  complete  cycle  in  the  industry,  being  a  producer, 
refiner  and  transporter,  as  well  as  marketer  of  crude  oil  and 
its  products  in  all  parts  of  the  world. 

Refining  Properties — The  company  directly  and  through 
subsidaries  operates  extensive  and  modern  refineries  in  the 
Western  Hemisphere  as  follows: 


ChargiMg  Capacity  • 


Location  (Barrels) 

Bayonne,  New  Jersey .  45,000 

Bay  Way,  New  Jersey .  25,000 

Jersey  City,  Now  Jersey .  lo,006 


'  f 


Standard  Oil  Company  of  New  Jersey  7$ 


Parkersburg,  West  Virginia . 2,500 

Baltimore,  Maryland  .  6,00© 

Baton  Rouge,  Louisiana .  40,000* 

Yale,  Oklahoma  .  25,000f 

Sarnia,  Canada  .  13,000* 

Vancouver,  B.  C .  4,500* 

Regina,  Canada  . .  .  . .  .\ .  2,000* 

Halifax,  Nova  Scotia . Building 

Talara,  Peru  .  6,000* 

Tampico,  Mexico  . .  10,000f 


Total  daily  charging  capacity .  194,000 


♦When  extensions  under  way  are  completed. 
tUsed  only  as  a  Topping  Plant. 

At  its  Bay  Way,  N.  J.,  works  the  company  installed  dur¬ 
ing  1916  one  hundred  and  fifty  Burton  pressure  stills,  where¬ 
by  it  has  increased  its  gasolene  output  1,500,000  barrels 
(50  gallons  capacity)  annually. 

In  addition  to  the  above,  the  company  operates  a  refinery 
in  Roumania,  where  its  subsidiary,  the  Romana-Americana, 
has  important  producing  properties.  The  company  also  oper¬ 
ates  a  benzine  plant  at  Regensburg,  Germany. 

The  company  also,  through  a  group  of  foreign  subsidiaries, 
owns  storage  installations,  marketing  stations  and  equipment 
in  France,  Belgium,  The  Netherlands,  Scandinavia,  Germany, 
Roumania  and  Italy. 

Pipe  Line  Properties — In  order  to  supply  crude  oil  to  its 
New  York  and  Baltimore  refineries,  the  company  owned  and 
operated  a  pipe  line  system  having  a  daily  capacity  of  nearly 
98,000  barrels.  These  pipe  lines  are  located  as  follows: 

1.  Extending  from  Centerbridge,  on  the  boundary  line  of 

New  Jersey  and  Pennsylvania,  to  the  Bay  Way  and 
Bayonne  refineries. 

2.  Extending  from  Unionville,  on  the  boundary  line  of  New 

York  and  New  Jersey,  via  Newfoundland  and  Saddle 
River,  N.  J.,  to  the  Bayonne  Refinery  and  the  Hudson 
River. 

3.  Extending  from  Fawn  Grove,  Pa.,  on  the  boundary  line 

of  Pennsylvania  and  Maryland,  to  the  Baltimore  re¬ 
finery. 

In  addition  to  the  above  lines,  there  is  also  a  short  pipe 
line  connecting  the  Bayonne  and  Jersey  City  refineries,  and 
five  lines  carrying  refined  oil  between  Bayonne  and  Bay  Way. 

Under  the  recent  decision  of  the  Supreme  Court  these  lines 
have  been  classed  as  common  carriers.  As  this  placed  con¬ 
trol  of  these  operations  under  the  Interstate  Commerce  Com¬ 
mission  it  was  deemed  advisable  to  turn  them  over  to 
separate  corporations.  Accordingly,  the  pipe  lines  extending 
from  Fawn  Grove,  Pa.,  to  Baltimore,  Md„  have  been  sold  to 
the  Maryland  Pipe  Line  Company.;  the  line  between  Bayonne 
and  Centerbridge,  Pa.,  has  been  sold  to  the  Tuscarora  Oil 
Company,  Ltd.;  the  line  between  Unionville,  N.  Y.,  and  Sad¬ 
dle  River,  N.  J.,  which  branches  from  there  to  Bayonne,  N.  J., 
and  Hunter’s  Point,  Long  Island,  has  been  sold  to  the  New 
York  Transit  Company. 

Marine  Properties — Befitting  its  premier  position  as  an 
international  marketing  organization,  the  company  operates 
the  largest  fleet  of  tank  ships  on  the  seas,  all  of  those  in 
active  service  at  the  present  time  flying  the  Stars  and  Stripes. 

The  gross  tonnage  of  the  fleet  in  operation  is  187,280  tons 
and  there  are  under  construction  in  Americari  ship  yards  for 
1917  delivery,  fifteen  additional  tankships  of  a  oombined 
grass  tonnage  of  126,712  tons,  which  will  give  the  •ompany’s 


Standard  Oil  Company  of  New  Jesser 


7* 


fleet  a  total  tonnage  of  313,992  tons  at  the  close  of  the  cur- 
tent  year. 

Lloyd's  Register  for  1916-17  shows  the  following  bulk  oil 
and  case  oil  carriers  owned  by  Standard  Oil  Company  of 
New  Jersey: — 


Gross 


Vessel  Tonnage 

Ardmore . .  7,129 

Baton  Rouge  .  . .  4,973 

Bayway  . ,  .  5,083 

Bradford  . .  6,306 

Brindilla  .  4,171 

Caddo  .  6,329 

Caloria  .  4,095 

Charles  Pratt  .  9,059 

Communipaw  .  3,710 

Cushing  .  6,894 

Dawnlits  .  1,956 

Daylite  .  1,956 

Dayton  .  5,335 

De  Soto  . 6,208 

Glenpool  .  5,409 

H.  H.  Rogers .  10,900 

John  D.  Archbold...  8,374 

John  D.  Rockefeller.  8,374 

Matinieock  .  6,766 

Scheduled  for 
Gross 

Vessel  Tonnage 

Benjamin  Brewster..  5,605 

James  McGee .  10,900 

W.  C.  Teagle .  9,100 

S.  V.  Harkness .  6,400 

Josiah  Macy  .  6,400 

P.  Q.  Barstow .  10,900 

O.  B.  Jennings .  10,90<1 

Pred.  W.  Weller .  10,500 

A.  C.  Bedford .  10,500 


Gross. 


Vessel 

Tonnage 

Motuno  . 

2,730 

Moonlite  . 

1,956 

Mareni  . 

4,045 

Muskogee  . 

7,225 

Petrolite  . 

3,710 

Pioneer  . 

5,075 

Platuria  . 

3,445 

Polarine  . 

4,046 

Princeton  . 

5,081 

Somerset  . 

5,079 

Standard  . 

10,073 

Starlite  . 

1,956 

Sunlite  . 

1,956 

Twilite  . 

1,956 

William  Rockefeller. 

10,900 

Wico  . 

2,748 

Westoil  . 

2,172 

Total . 

.  187,280 

1917  Completion 

Vessel 

Gross. 

Tonnage 

H.  M.  Flagler . 

8,374 

F.  D.  Asche . 

8,374 

William  G.  Warden. 

9,059 

W.  H.  Tilford . 

J.  A.  Bostwick . 

8,490 

O.  T.  Waring . 

5,605 

Total  Building... 

.  126,712 

Accessory  Plants — The  company  also  operates  a  Can  and 
Case  factory  which  has  a  capacity  of  6,000  cases  per  hour, 
each  case  containing  two  tin  cans  of  five  gallons  capacity 
each.  The  daily  output  of  this  factory  averages  60,000  cases 
containing  600,000  gallons  of  oil,  and  over  1,000,000  cases  per 
month,  which  are  exported. 

The  company  also  has  in  operation  as  auxiliaries  of  its 
business,  barrel  factories,  cooperage  plants,  canning  plants, 
glue  factories  and  pipe  shops. 

In  complying  with  the  decree  of  the  United  States  Supreme 
Court,  directing  a  dissolution  of  trust  relations,  the  company 
did  not  find  it  imperative  to  dispose  of  all  of  its  holdings  in 
subsidiary  companies.  Therefore,  the  securities  of  the  fol¬ 
lowing  companies  are  retained,  as  indicated  hereinafter: 


Total 

COMPANY  Capital 

Stock 

American  Petroleum  Company .  $3,140,000 

Bedford  Petroleum  Company .  350,000 

Carter  Oil  Company .  2,000,000 

Clarksburg  L.  &  H.  Company .  100,000 


Deutsch-American  Petroleum  Co...  M9,000,000 


P.  C.  of  Stock 
Owned  by 
S.  O.  of  N.  J. 
51.3% 
99.3% 
100.0% 
51.0% 
100.0% 


Standard  Oil  Company  of  New  Jersey 


81 


Gilbert  &  Barker  Mfg.  Company.... 

Hazlewood  Oil  Company . 

Hope  Natural  Gas  Company . 

Imperial  Oil  Company,  Ltd . 

Interstate  Cooperage  Company . 

International  Petroleum  Co.,  Ltd.. 

Marion  Oil  Company . 

Oklahoma  Pipe  Line  Company . 

Penna.  Lubricating  Company . 

Peoples’  Natural  Gas  Company . 

River  Gas  Company . 

tRomano-Americana  . 

Standard  Oil  Company  of  Brazil.... 
Standard  Oil  Company  of  Louisiana 
Soc.  Italian-American  Petroleum.... 
Taylorstown  Natural  Gas  Company. 

Underhay  Oil  Company . 

United  Oil  Company . 

3 West  India  Oil  Company . 

West  India  Oil  Refining  Company... 
West  Virginia  Oil  Company . 


40,060 


100.6% 


500,600 

22,000,000 

206,000 

15,060,000 

100,000 

5,000,000 


100.0% 

80.0% 

100.0% 


50,000 

1,000,000 

190,000 

5,000,000 

500,000 

5,000,000 

1,000,000 


56.0% 

100.0% 

60.0% 

100.6% 

52.6% 


25,000 

3,000,000 

3,000,000 

300,000 

200,000 


10,000 


100.0% 

100.0% 

60.0% 

30.0% 

98.8% 


99.3% 

50.0% 

50.6% 


tSubsidiary  of  Imperial  Oil  Company. 

^Capitalization  doubled  out  of  1913  earnings. 

§Ca.pital  increased  from  $100,000  in  July,  1915. 

Among  the  forementioned  controlled  companies  are  several 
possessing  valuable  properties  of  large  production.  Nine  of 
the  subsidiary  companies  are  foreign  and  the  balance  Ameri¬ 
can  companies,  producing  crude  oil  and  natural  gas.  Standard 
Oil  of  New  Jersey  controls  ten  natural  gas  companies,  the 
stock  of  which  was  valued  at  $15,176,899  in  1906. 

The  company’s  attorneys  recently  made  a  statement  be¬ 
fore  the  Federal  Trade  Commission  that  one-fifth  ef  the 
company’s  net  profits  were  derived  from  its  natural  gaa 
properties. 

Like  the  parent  company,  some  of  the  above-mentioned 
controlled  companies,  are  complete  cycles  in  the  oil  industry. 
Among  the  important  companies  of  that  class  are  the  Imperial 
Oil  Company,  and  its  new  subsidiary,  the  International  Petro¬ 
leum  Company,  Ltd. ;  Standard  Oil  Company  of  Louisiana, 
and  the  Romano-Americana  Oil  Company.  The  more  im¬ 
portant  of  these  companies  are  described  in  detail  hereafter. 

Earnings — No  financial  statements  are  issued  by  the  com¬ 
pany  but  the  Federal  Trade  Commission  in  its  report  on 
gasolene  (April,  1917)  gives  the  following  review  of  the 
company’s  operations  during  1915: — 

Net  Profits,  1915 . t . . .  $51,591,569 

Dividends  .  19,667,660 


Balance  to  Surplus . . .  $31,923,909 

Capital  and  Surplus,  January  1,  1915 .  249,979,868 


Net  Assets,  January  1,  1916 . $281,903,777 

Earnings  were  at  the  rate  of  52  per  cent,  on  the  $98,- 
338,383  capital  stock  outstanding,  or  at  the  rate  of  20.6  per 
cent,  on  the  company’s  total  investment. 

As  1915  was  only  a  fairly  profitable  year  in  the  oil  in¬ 
dustry,  it  may  be  inferred  conservatively  that  earnings  dur¬ 
ing  1916  were  on  a  higher  basis. 

An  interesting  comparison  may  be  found  by  referring  back 
to  the  figures  taken  off  by  the  government  experts  in  the 


82 


Standard  Oil  Company  of  New  Jerser 


dissolution  suit.  These  give  the  1906  earnimgs  Idle  old 


company  as  follows: 

Net  Profit,  own  business .  $9,571,996 

Dividends  from  Subsidiary  Corporations .  63,227,387 

Net  Increase  in  Book  Value  of  Corporate  Stocks 

Carried  as  Investment .  80,322,860 


$83,122,252 

Dividends  .  39,335,320 


Carried  to  Surplus .  $43,786,932 


In  the  eight-year  period  1899-1906  earnings  of  the  Stand¬ 
ard  Oil  Company  of  New  Jersey  and  all  subsidiaries,  aver¬ 
aged  $51,000,000.  The  parent  company  has  therefore  reached 
in  five  years  of  independent  operation,  the  same  earning 
power  which  it  enjoyed  ten  years  previously  when  working 
as  a  unit  with  its  thirty-three  subsidiaries. 

General  Remarks — Standard  Oil  Company  of  New  Jersey’s 
trade  activities  are  largely  international.  With  the  dissolu¬ 
tion,  the  company  retained  for  its  domestic  marketing  terri¬ 
tory  only  the  States  of  New  Jersey,  Delaware  and  Maryland 
and  through  its  Lousiana  branch,  the  States  of  Louisiana, 
Arkansas  and  Mississippi.  Domestic  business  constitutes  only 
a  small  fraction  of  the  company’s  enormous  operations.  I* 
1915,  the  company  exported  179,982,931  gallons  of  gasolene,  or 
57  per  cent,  of  total  gasolene  exports  for  the  year. 

The  reason  for  this  abandonment  of  domestic  business  to 
its  onetime  subsidiaries  had  its  basis  in  politico — economic 
conditions.  In  the  first  place  the  enormous  resources  of  the 
parent  company,  would  have  made  real  competition  with  its 
segregated  companies,  impossible  without  leading  to  the  ulti¬ 
mate  extinction  of  the  latter  and  the  recreation  of  the  mo¬ 
nopoly,  which  the  government  had  opposed.  In  the  second 
place,  the  parent  company  had  been  so  long  the  object  of 
aggressive  activity  by  those.  wrho  found  in  baiting  “big  busi¬ 
ness”  an  easy  avenue  to  political  preferment,  that  its  ac¬ 
tivities  in  the  domestic  field  would  have  invited  continued 
hostility  from  the  same  sources.  The  directing  minds  of  the 
great  corporation,  whose  patriotism  is  on  a  par  with  their 
business  ability,  set.  themselves  to  the  task  of  maintaining 
American  supremacy  in  the  oil  trade  of  the  world. 

At  the  outset  of  the  war,  the  company’s  operations  were 
hampered  seriously  not  only  through  the  suspension  of  its 
business  with  Germany  and  Belgium,  which  furnished  it  the 
largest  markets  for  its  illuminating  oil,  but  also  by  the  shut¬ 
ting  off  of  its  largest  avenue  of  ocean  transportation  through 
the  enormous  fleet  of  tankers  operated  under  the  ownership 
of  its  German  subsidiary,  the  Deutsche-Amerikanische  Pe¬ 
troleum  Gesellschaft.  This  fleet  consisted  of  forty  tankers, 
all  under  German  registry.  Through  the  amendment  to  our 
shipping  laws  passed  after  the  outbreak  of  hostilities,  it  was 
possible  to  transfer  all  of  these  vessels,  except  a  few  tied  up 
in  German  ports,  to  American  registry.  The  company  also 

was  hampered  by  British  interference  with  its  cargo  con¬ 
signments  to  neutral  European  countries,  but  diplomatic  rep¬ 
resentations  finally  effected  arrangements  to  obviate  further 
delays  and  recently  the  volume  of  the  company’s  exports  has 
regained  normal  proportions. 

More  recently  the  company  suffered  severe  loss  through 
the  destruction  of  its  valuable  producing  properties,  refineries 
and  storage  tanks  in  the  Roumania  fields. 


Imperial  Oil  Company,  Ltd. 


83 


Officers — President — A.  C.  Bedford. 

Vice-President — F.  W.  Weller. 

Vice-President — F.  H.  Bedford. 

Vice-President — F.  D.  Asche. 

Treasurer — S.  B.  Hunt. 

Secretary — Charles  T.  White. 

Assistant  Secretary — M.  H.  Eames. 

Directors — F.  D.  Asche,  A.  C.  Bedford,  F.  H.  Bedford,  S. 
B.  Hunt,  Walter  Jennings,  Henry  M.  Tilford,  O.  T.  Waring, 
F.  H.  Weller  and  George  H.  Jones. 

Transfer  Office — No  26  Broadway.  New  York  City. 

Annual  Meeting — Second  Tuesday  in  January. 


Imperial  Oil  Company,  Ltd. 

Capital,  $50,000,000.  Outstanding,  $22, 000, $00. 

The  original  capital  was  $1,000,000,  which  was  increased 
later  to  $6,000,000.  In  July,  1913,  the  capital  was  again 
raised  to  $15,000,000,  of  which  $11,000,000  was  issued,  and  the 
company  obtained  from  the  Dominion  of  Canada  an  amended 
charter  with  extremely  broad  powers. 

In  November,  1915,  the  stockholders  authorized  a  capita) 
increase  to  $50,000,000,  to  put  the  company  in  position  to 
take  care  of  any  future  growth  in  its  business.  A  stock  divi¬ 
dend  of  100  per  cent,  was  declared  in  December,  1915. 

At  the  same  time,  the  company’s  charter  was  broadened 
further  to  include  the  right  to  operate  all  forms  of  trans¬ 
portation  properties.  The  company  has  advanced  the  wages 
•f  its  employes  recently  and  instituted  a  profit  sharing  plan 
to  afford  the  employes  opportunity  to  become  stockholders. 

The  company  owns  a  majority  of  the  stock  of  the  Inter¬ 
national  Petroleum  Company,  Ltd. 

Dividends — The  company  paid  12  per  cent,  annually  on  its 
$11,000,000  capitalization  and  is  now  paying  4  per  cent,  semi¬ 
annually  on  $22,000,000  on  March  1  and  September  1-. 

Properties — The  company  operates  two  of  the  most  mod¬ 
ern  refineries  in  the  world,  located  at  Sarnia,  0*t.,  and  Van¬ 
couver,  B.  C.,  the  former  having  13,000  barrels  capacity  and 
the  latter,  4,500  barrels.  Ground  for  a  third  refinery  has 
been  broken  at  Regina  in  Saskatchewan,  where  a  $1,500,000 
refinery  and  marketing  station  will  be  erected  to  supply  the 
great  agricultural  section  of  the  Canadian  Northwest.  A 
fourth  refinery  is  building  at  Halifax,  Nova  Scetia,  which 
will  handle  Trinidad  oil  and  asphalt.  Ground  has  been  pur¬ 
chased  for'  a  refining  and  marketing  plant  at  Quebec  and 
*egotiations  are  in  progress  for  a  refinery  site  at  Toronto. 

Oil  is  supplied  to  the  Sarnia  refinery  through  the  com¬ 
pany’s  subsidiary,  the  Imperial  Pipe  Line  Company,  Ltd., 
which  operates  an  8-inch  line,  155  miles  in  length,  from 
Sarnia  to  Cygnet,  Ohio,  where  it  connects  with  the  Buckeye 
Pipe  Line.  The  Vancouver  refinery  is  supplied  with  crude  by 
the  International  Petroleum  Company,  Ltd.,  which  operates  a 
fleet  along  the  Pacific  Coast  from  its  Peruvian  field.  The 
new  refinery  at.  Regina,  will  be  supplied  by  oil  from  the  Mon¬ 
tana  and  Wyoming  fields.  Raw  material  for  the  new  Halifax 
refinery  will  be  brought  in  tankships  from  Trinidad. 

The  Sarnia  refinery,  which  spreads  over  96  acres  has  been 
rebuilt  practically  in  the  last  three  years.  The  latest  addi¬ 
tions  are  two  batteries,  each  containing  ten  pressure  stills  of 
the  Burton  variety  for  producing  motor  spirit.  These  stills 
when  complete  will  have  a  daily  capacity  of  6,000  barrels 
daily.  One  battery  is  now  in  operation. 


84 


Standard  Oil  Company  of  New  Jersey 


There  are  also  thirty-six  stills  of  7,000  barrels  capacity, 
twelve  of  the  old  type,  sixteen  modern  tower  stills,  four 
continuous  run  stills,  four  reducing  stills  and  four  tar  stills. 
The  refinery  also  operates  a  grease  factory,  wax  plant,  acid 
plant  and  candle  factory.  It  also  manufactures  its  own  cans, 
cases  and  barrels  and  has  a  boiler  shop  and  foundry  in  which 
it  constructs  its  own  tank  cars  and  storage  tanks.  The 
company’s  employees  erected  entirely  the  large  and  modern 
office  building  on  the  refinery  grounds.  Another  subsidiary, 
the  Perfection  Company,  manufactures  and  sells  Perfection 
oil  stoves. 


In  order  to  handle  its  growing  business  in  western  Canada, 
the  company  expended  $1,000,000  during  1915  in  com¬ 
pleting  a  modern  refinery  and  shipping  station  at  Impoco  on 
Burrard  Inlet,  near  Vancouver,  B.  C.  There  is  deep  water  navi¬ 
gation  and  rail  connection  to  the  plant.  This  plant  cover* 
83  acres  and  is  now  operating  six  modern  stills  with  a  ca¬ 
pacity  of  1,500  barrels  daily.  A  battery  of  ten  Burton  pres¬ 
sure  stills  is  being  installed  which  will  give  the  refinery  an 
additional  capacity  of  3,000  barrels  daily  and  largely  increase 
its  gasolene  output. 


In  its  marketing  business,  the  company  operates  550 
marketing  stations  of  which  ten.  are.  bulk  storage  stations  lo¬ 
cated  at  Sault  St.  Marie,  St.  Catherine’s,  Toronto,  Montreal, 
Halifax,  Brockville,  Prince  Rupert  and  Impoco,  near  Van¬ 
couver.  At  Fort  William  there  is  tankage  for  6,000,000  gal¬ 
lons  and  at  West  Fort  for  550,000  gallons.  Three  steel  storage 
tanks  of  40,000  barrels  each  have  been  erected  recently  at 
the  Sarnia  plant  and  two  37,500  barrel  tanks  for  asphaltic 
oils  and  a  large  gasolene  tank  have  been  erected  at  Toronto. 

The  company  is  completing  a  large  administration  build¬ 
ing  at  Toronto. 

To  supply  its  trade  on  the  Great  Bakes  and  handle  the 
output  of  its  seaboard  refineries,  the  company  maintains  an 
extensive  fleet  of  tank  steamers  and  barges. 

The  gross  tonnage  in  operation  on  January  1,  1917,  was 
23,895  tons,  as  follows: — 


Vessel 

Tonnage 

Imperial . .  .  . 

.  796 

Imperoyal . 

.  2,253 

Impoco . 

.  2,257 

Iocolite . 

.  2,300 

Iocoma . 

.  1,669 

Vessel  Tonnage 

Kaministique  .  2,773 

Polarine  .  3,286 

Retlaw  .  4,061 

Royalite  .  2,300 

Sarnolite  .  2,309 


Scheduled  for  1917  Completion 

Torontolite .  2,300  Talaralite  .  2.300 

The  four  vessels  of  the  Sarnolite  class  are  250  feet  long, 
43  feet  beam  and  58  feet  moulded  depth,  the  dimensions 
permitting  their  use  as  ocean  going  vessels  and  also  making 
it  possible  for  them  to  pass  in  and  out  of  the  existing  canal 
system  between  the  Atlantic  and  the  Great  Bakes.  They  will 
carry  Trinidad  crude  to  the  Halifax  refinery  as  the  Imperoyal 
and  Impoco  are  now  carrying  Peruvian  oil  to  the  Vancouver 
refinery. 

As  the  company's  stock  is  not  in  the  hands  of  the  general 
public,  no  financial  statement  is  issued.  That  its  earnings  are 
heavy,  the  dividend  record  attests.  It  is  notable,  moreover, 
that  the  company  has  spent  between  $2,000,000  and  $5,000,000 
annually  for  the  past  three  years  on  plant  expansion. 

The  company  subscribed  $1,000,000  to  each  of  the  three 
recent  Canadian  war  loans. 


International  Petroleum  Company,  Ltd. 


85 


Officers — President — Walter  C.  Teagle. 

Vice-President — J.  L.  Englehart. 

Vice-President — G.  W.  Mayer. 

Vice-President — C.  O.  Stillman. 

Secretary — W.  T.  McKee. 

Directors — The  above  and  W.  J.  Hanna,  A.  S.  Rogers,  J.  P. 
Rogers  and  T.  H.  Smallman. 

Registered  Office® — Sarnia,  Ontario,  Canada. 
Administration  Office — Dominion  Bank  Bldg,,  Toronto,  Can. 


International  Petroleum  Co.,  Ltd. 

Chartered  in  September,  1914,  under  the  laws  of  the  Do¬ 


minion  of  Canada. 

Capitalization  Authorized  Issued  Par 

Preference  Shares  .  £100,000  £100,000  £1 

Ordinary  Shares  .  3,900,000  1,151,525  1 


The  Preference  shares  are  not  redeemable  and  non-cumu- 
lative.  They  enjoy  a  preference  to  assests  in  liquidation  but 
the  Ordinary  shares  have  priority  as  to  dividend  up  to  6  per 
cent. 

The  company  was  organized  as  a  subsidiary  of  the  Im¬ 
perial  Oil  Company,  Ltd.,  to  take  over  the  producing  terri¬ 
tory,  refining  and  transportation  properties  and  the  market¬ 
ing  business  of  the  London  and  Pacific  Petroleum  Company, 
Ltd.,  and  the  Lagunitos  Oil  Company,  Ltd.,  both  English 
companies  operating  in  Peru. 

The  London  and  Pacific  Petroleum  Company  was  regis¬ 
tered  in  London  in  1889  and  has  a  ninety-nine-year  lease  on 
extensive  tracts  of  oil  lands  adjacent  to  the  Port  of  Talara 
in  Peru,  where  its  refinery,  tank  farm  and  sea  loading  sta-/ 
tion  is  located.  The  company  was  capitalized  for  £250,000 
preference  shares  and  £390,000  debentures  have  been  issued. 
The  company  paid  £200,000  in  preference  shares  and.  royalties 
for  its  producing  lands.  Since  1912,  the  company  has  paid 
6  per  cent,  dividends.  The  latest  earnings  reported  were 
£11,978  in  1911  and  £51,832  after  deducting  £29,997  for  de¬ 
preciation  in  1912. 

The  Lagunitos  Company  was  capitalized  for  £30,000  pref¬ 
erence  shares  and  £220,000  common  shares  and  paid  the 
London  and  Pacific  £25,000  cash  and  £125,000  in  ordinary 
shares  for  a  concession  to  develop  certain  territory.  This 
company’s  production  was  3,722  tons  in  1911,  14,706  tons  in 
1912  and  39,650  tons  in  1913.  Earnings  for  1913  showed  a 
surplus  of  £20,973  after  all  charges  out  of  which  a  special 
dividend  of  £18,484  was  distributed  among  the  preference 
shareholders. 

The  combined  companies  have  a  present  output  of  6, 50(5 
barrels  daily  which  can  be  increased  greatly.  The  present 
refinery  of  the  company  has  a  charging  capacity  of  1,500 
barrels,  but  a  new  refinery  of  5,000  barrels  capacity  is  now 
under  construction.  With  the  completion  of  the  new  refinery 
the  company  will  be  able  to  supply  gasolene,  illuminating  oil 
and  lubricants  along  the  west  coast  of  South  America.  The 
company  has  also  built  up  a  successful  marketing  business  in 
fuel  oil  throughout  this  territory  in  which  coal  has  been  a 
scarce  commodity. 

The  company’s  producing  properties  are  at  Negritos  and  - 
Talara.  Recent  development  of  the  company’s  properties 
have  proven  up  a  large  acreage  and  a  foree  of  expert  drillers 
has  been  recruited  in  Canada  to  work  in  the  Peruvian  fields 
during  1917.  It  is  possible  that  sufficient  production  may  be 
developed  to  offset  the  rapidly  declining  production  of  lighter 

J 


86 


Standard  Oil  Company  of  New  Jersey 


oils  in  California.  The  surplus  crude  oil  is  shipped  to  the 
Imperial  Oil  Company  refinery  at  Vancouver,  B.  C.,  and  the 
Standard  Oil  Company,  California,  refinery  at  Richmond,  Cal. 
For  this  purpose  the  company  owns  several  large  tank  steam¬ 
ers  and  has  others  under  charter.  The  vessels  which  it  owns 
are  the  “Azor,”  2,332  tons;  “Circassian  Prince.’  _,2a8  tons; 
“Luz  Blanca,”  4,868  tons;  “Mina  Brea,”  4,145  tons. 

The  company’s  refined  product  is  sold  through  distributing 
stations  at  Payta  and  Callao,  in  Peru,  and  Pisagua,  Iqulqu*. 
Tocopilla,  Antofogasta,  and  Taltal,  in  Chile. 

Fear  that  the  earnings  of  the  company  would  be  affected 
by  the  intention  of  the  Peruyian  Government  to  levy  a  heavy 
export  tax  on  petroleum,  was  dissipated  in  November,  1916, 
when  the  tax  was  placed  at  one  shilling  a  ton. 

The  company’s  stock  is  listed  upon  the  Toronto  Stock 
Exchange. 

Directors  and  Officers — W.  C.  Teagle,  President;  G.  H. 
Smith,  Vice-President;  J.  L.  Englehart,  W.  J.  Hanna>,  Sir 
Edmund  Osier,  W  Nesbitt;  Secretary, .  H.  F.  Miller,  83 
Street,  Toronto,  Canada. 

Head  Office — Dominion  Bank  Bldg.,  Toronto,  Canada. 


Standard  Oil  Company,  Louisiana 

Capital,  $5,000,000.  All  owned  by  Standard  Oil  Company 
of  New  Jersey. 

Incorporated  under  Louisiana  laws  to  carry  on  all  branches 
of  the  mineral  oil  business. 

The  company  has  a  modern  refinery  at  tidewater  above 
Baton  Rouge,  La.,  and  in  connection  with  it  an  extensive 
storage  and  shipping  station.  The  company  also  owns  an 
extensive  pipe  line  system,  and  operates  a  can  and  casing 
factory,  acid  plant  and  other  accessories  in  connection  with 
its  refinery. 

Within  the  past  three  years,  growing  importance  of  the 
Mid-Continent  and  Gulf  Coast  oil  fields  induced  the  parent 
company  to  enlarge  greatly  the  facilities  of  the  Louisiana 
company.  The  original  plant  represented  an  investment  of 
$2,500,000,  aside  from  the  pipe  lines.  Three  million  five  hun¬ 
dred  thousand  dollars  was  appropriated  in  1914  for  extensions 
and  the  refinery,  through  the  addition  of  42  new  stills,  now 
has  a  charging  capacity  of  40,000  barrels  a  day.  The  Baton 
Rouge  plant,  tank  farms  and  deep  water  loading  station 
cover  several  hundred  acres  along  the  Mississippi  River. 

Oil  for  the  refinery  is  carried  through  the  company’s  pipe 
line,  which  connects  at  the  Arkansas  border,  with  the  lines 
of  the  Prairie  Pipe  Line  Company,  through  that  State,  which 
in  turn  connect  at  the  Oklahoma  border  with  the  Oklahoma 
Pipe  Line,  owned  by  the  Standard  Oil  Company  of  New  Jer¬ 
sey,  which  traverse  the  southeastern  oil  regions  of  Oklahoma 
and  connect  with  the  Prairie  lines  running  south  from 
Cushing. 

The  delivery  capacity  of  the  Oklahoma  and  Prairie  lines 
south  has  been  raised  by  recent  extensions  to  35,000  barrels 
a  day. 

The  Lousiana  lines  consisted  originally  of  an  8-inch  trunk 
line,  with  gathering  lines  throughout  the  Caddo  ar.-d  Red 
River  pools  in  northern  Louisiana.  The  8-inch  line  is  now 
being  looped  and  a  new  12-inch  trunk  line  is  being  laid.  As 
the  pipe  runs  through  marshy  ground,  it  is  being  set  in  solid 
cement  after  being  .paraffined,  in  order  to  prevent  deteriora¬ 
tion.  The  company  also  is  doubling  the  capacity  of  three  of 
its  seven  pumping  stations.  The  company’s  extensive  pipe 
line  system  is  now  capable  of  handling  75,000  barrels  a  day. 


Standard  Oil  Company — Louisiana 


87 


In  addition  to  its  great  tank  farm  at  Baton  Rouge,  th® 
company  has  built  thirty  tanks  of  55,000  barrels  capacity 
each,  at  Oxford,  La.,  for  the  storage  of  Red  River  oil,  which 
is  usable  only  for  fuel  and  lubrication. 

The  company  also  has  erected  at  Trees  City,  La.,  in  the 
Caddo  field,  a  plant  for  the  extraction  of  gasolene  from 
casinghead  gas. 

At  Bridge  Junction,  Ark.,  on  the  west  bank  of  the  Miss¬ 
issippi  River,  opposite  Memphis,  Tenn.,  the  company  has 
erected  a  station  with  storage  capacity  for  2,500,000  barrels. 
Refined  and  fuel  oils  are  delivered  to  this  plant  from  Baton 
Rouge  in  the  company’s  barges. 

The  company  is  also  among  the  largest  producers  of  crude 
oil  in  the  Louisiana  fields.  It  controls  extensive  acreage  in 
the  Caddo  and  Red  River  districts  and  acquired  in  1916 
$2,000,000  worth  of  leases  in  the  new  Crichton  field,  with 
4,000  barrels  of  production. 

The  company’s  domestic  marketing  business  is  confiped  to 
the  States  of  Louisiana,  Arkansas  and  Mississippi,  but  it  also 
supplies  large  quantities  of  refined  oils  to  the  Standard  Oil 
Company,  Kentucky,  and  other  marketing  concerns  operating 
in  the  Southern  and  lower  Atlantic  States. 

The  bulk  of  the  business,  however,  is  supplying  oils  for 
export  to  the  Standard  Oil  Company  of  New  Jersey. 

As  the  company’s  stock  is  owned  entirely  by  Standard  Oil 
Company  of  New  Jersey,  no  financial  statements  are  issued 
but  the  Interstate  Commerce  Commission’s  report  on  the 
Mid-Continent  pipe  line  systems,  showed  the  growth  of  the 
company  over  a  three-year  period.  Since  the  last  balance 
sheet  given  below,  the  company  has  expended  more  than 
$5,000,000  in  refinery  expansion  and  adding  to  its  producing 
properties.  The  following  financial  statements  are  illumin¬ 
ating: — ■ 

Comparative  Balance  Sheets  as  of  December  31 


Assets:  1911  1912  1913 

Refinery  .  $2,976,259. 77  $4,895,574.22  $5,364,819.27 

Sales  Dept .  460,728.02  514,142.80  709,889.29 

Crude  Dept .  2,721,879.41  3,012,020.90  4,406,608.82 

Producing  Dept .  6,657,223.93  8,029,129.62  9,298,188.31 

Sundry  Property....  447,393.95  447,508.58  610,649.64 

Inventory  .  1,921,102.78  2,827,057.84  3,519,794.15 

Bills  Receivable .  274,909.20  427,123.45  889,431.98 

Accounts  Receivable.  352,660.69  435,341.20  440,441.98 

Cash  .  101,526.86  170,198.57  62,310.32 


Total  Assets  - $15,913,684.61  $20,758,097.18  $25,302,133.76 

Liabilities:  1911  1912  1913 

Capital  .  $5,000,000.00  $5,000,000.00 

$5,000,000.00 

Standard  Oil  Co.  (N. 

J.)  Doan  Account.  9,338,384.91  11,467,479.91  7,902,931.26 

Accounts  Payable...  543,578.96  557,088.87  773,560.68 

Depreciation  .  1,000,000.00  2,040,106.17  2,485,021.81 

Profit  and  Loss .  31,302.30  1,693,422.23  9,140,620.01 


Total  Liabilities.. $15,913,684.61  $20,758,097.18  $25,302,133.76 
Officers  and  Directors — President — P.  W.  W®Il®r. 
Vice-President — F.  H.  Bedford. 

Vice-President — P.  S.  Morris. 

Secretary  and  Treasurer — A.  K.  Gordon. 

Directors — The  above  and  D.  R.  Weller,  C.  O.  Scholder 
A.  C.  Bedford,  J.  A.  Moffett,  Jr.  and  C.  K.  Clarke. 


88 


St  anti;  wd  Oil  Company  of  New  Jersey 


Carter  Oil  Company 

Incorporated  in  Pennsylvania  in  1872  by  Col.  John  J. 
Carter.  Was  for  many  years  one  of  the  leading  producing 
companies  in  the  Appalachian  field  and  was  acquired  by 
Standard  Oil  Company  of  New  Jersey  in  1906. 

The  company  has  many  valuable  wells  throughout  Penn¬ 
sylvania  and  West  Virginia  and  ranks  next  in  importance  to 
the  South  Penn  Oil  Company  in  that  region. 

In  1914,  through  the  purchase  of  the  Avelon  Oil  and  Gas 
Company  and  the  Purvis  Turner  Oil  and  Gas  Company,  both 
Ohio  corporations,  for  a  total  outlay  of  about  $400,060,  the 
company  acquired  important  production  in  the  North  Lima 
fields.  During  1916  and  1917,  the  company  took  up  thousands 
of  acres  of  leases  in  the  new  Kentucky  fields  and  is  conduct¬ 
ing  an  extensive  development  campaign  in  that  State. 

For  some  time,  the  parent  company  had  forseen  that  the 
principal  source  of  supply  for  some  years  to  come  would  be 
in  Oklahoma,  and  early  in  1914,  Col.  Carter  went  to  Okla¬ 
homa  and  arranged  to  take  over  the  producing  leases  of 
Thomas  Slick,  who  controlled  a  large  holding  of  the  most 
promising  acreage  in  the  newly  developed  Cushing  pool.  As 
the  Slick  holdings  were  largely  departmental  leases,  the 
Secretary  of  the  Interior  refused  to  sanction  the  transfer, 
under  the  4,800  acre  limitation  rule.  Secretary  Lane’s  action 
was  based  on  his  assertion  that  the  controlling  ownership  of 
the  Carter  Oil  Company  and  the  Prairie  Oil  and  Gas  Com¬ 
pany  were  identical. 

In  February,  1915,  Col.  Carter  again  visited  Oklahoma 
and  succeeded  in  acquiring  for  his  company  valuable  hold¬ 
ings  in  the  Cushing  field  by  taking  over  from  John  H.  Mark¬ 
ham,  Jr.,  the  Eliza  Yarhola,  160-acre  allotment  and  the 
Luther  Manuel  160-acre  allotment,  both  in  the  north  end  of 
the  Cushing  field.  Ten  55,000  barrel  tanks  and  900,000  bar¬ 
rels  of  oil  went  with  the  leases.  The  Eliza  Yarhola  property 
is  regarded  as  one  of  the  most  remarkable  oil  properties  in 
the  coimtry.  The  seven  producing  deep  sand  wells  on  the 
lease  maintained  a  steady  average  above  15.000  barrels  a  day 
for  several  months.  The  Luther  Manuel  lease  also  w'as  de¬ 
veloped  into  one  of  the  most  profitable  producing  properties 
in  the  Cushing  field. 

In  addition  to  the  tankage  and  oil  obtained  with  its  Mark¬ 
ham  purchase,  the  Carter  Oil  Company  bought  twenty -threa 
55,000-barrel  tanks  and  contents  from  the  McMan  Oil  Com* 
pany;  seventeen  55,000-barrel  tanks  filled  and  nine  building 
from  White  and  Sinclair,  and  seventeen  55,000-barrel  tanks 
and  contents  from  the  Devonian  Oil  Company.  The  com¬ 
pany  also  made  several  important  contracts  with  Cushing 
producers  for  future  deliveries  at  the  low  price  prevailing  in 
March  and  April,  1915. 

Late  in  September,  1915,  the  company  purchased  from  the 
Quaker  Oil  and  Gas  Company,  a  subsidiary  of  the  Pure  Oil 
Company,  3,250.000  barrels  of  Cushing  oil  and  the  tanks  con¬ 
taining  it  at  $1.05  for  the  oil  and  the  tanks.  When  crude 
advanced  the  Quaker  company  tried  to  back  out  of  the  sale 
but  after  legal  proceedings  had  been  instituted,  a  compromise 
was  made  whereby  the  Carter  Oil  Company  took  31  tanks, 
containing  1,705.000  barrels,  ai  their  price  and  left  the 
Quaker  company  retain  29  tanks. 

By  December  31,  1915,  the  Carter  Oil  Company  had  20,000,- 
000  barrels  of  Cushing  oil  in  storage  and  a  daily  production 
in  Oklahoma  of  15,000  barrels. 

During  1916.  the  company  purchased  from  the  Merritt 
Oil  and  Gas  Company  for  $500,000  its  Boynton  pool  prop- 


Carter  Oil  Company 


89 


erties,  consisting  of  720  acres  and  a  one-half  interest  in 
160  acres  more,  with  900  barrels  daily  production  from  40 
wells.  The  company  also  purchased  for  $800,000  the  Skelley 
&  Russell  acreage  at  Healdton  and  for  $225,000  ^he  P.  L. 
Yoakum  production  at  Jenks,  Okla.  In  December,  1916,  the 
company  purchased  the  Derby  Oil  Company’s  properties  in 
the  Augusta  (Kansas)  pool  covering  1,400  acres  with  1,800 
barrels  of  daily  production.  The  price  was  around  $2,000,000, 
bringing  its  investments  for  the  year  in  Mid-Continent  produc¬ 
tion  up  to  $3,500,000. 

To  get  this  oil  to  tidewater,  the  Oklahoma  Pipe  Line  has 
completed  a  40-mile  extension  from  the  Glenn  Pool  to  the 
Carter  tank  farm  at  Cushing.  With  this  line  working  the 
company  can  ship  15,000  barrels  a  day  to  Baton  Rouge  for 
transfer  by  tankships  to  the  Bayonne  refineries. 

The  company  has  erected  near  Yale,  Okla.,  a  topping 
plant  of  25,000  barrels  daily  capacity,  where  it  distills  the 
gasolene  and  kerosene  from  its  crude  and  ships  the  distillate 
to  Standard  Oil  Company  of  Louisiana.  The  installation  of 
a  $175,000  casing  head  gasolene  plant  at  Norfolk  will  also 
increase  its  output  of  gasolene. 

President — A.  F.  Corwin,  Pittsburgh,  Pa. 

First  Vice-Pres. — F.  C.  Harrington,  Sisterville,  W.  Va. 

Second  Vice-Pres. — Edgar  G.  Pew,  Tulsa,  Okla. 

Treasurer  and  Asst.  Secy. — C.  B.  Ware,  Titusville,  Pa. 

Directors — A.  F.  Corwin,  F.  C.  Harrington,  Edgar  G. 

Pew,  A.  Clarke  Bedford,  John  Worthington. 

Office — Sisterville,  W.  Va. 

The  West  India  Oil  Company 

This  company,  which  was  incorporated  originally  for 
$100,000,  increased  its  capitalization  in  July,  1915,  to  $3,000,000 
for  the  purpose  of  bringing  its  capital  to  a  parity  with  the 
company’s  assets. 

The  company  markets  the  New  Jersey  Company’s  prod¬ 
ucts  in  Cuba,  the  West  Indies  and  Central  America.  This 
brings  the  Panama  Canal  within  its  territory  and  it  has 
marketing  stations  both  for  fuel  oil  and  refined  products  in 
the  Canal  Zone.  The  company  also  operates  through  a  sub¬ 
sidiary,  the  West  India  Refining  Company,  a  small  refinery 
at  Havana,  Cuba.  Standard  Oil  Company  of  New  Jersey 
owns  all  but  the  directors’  qualifying  shares.  Officers  of  the 
company  are  F.  D.  Asche,  president,  and  C.  T.  White,  sec¬ 
retary. 

Deutsche-Amerikanisclie  Petr.  Gesellschaft 

Capitalization — 30,000,000  marks  ($7,140,000),  of  which 
only  9,000,000  marks  is  issued  in  the  form  of  voting  shares, 
the  remaining  21,000,000  marks  being  held  in  a  security 
known  .as  Genuss-Scheine,  which  is  stock  without  voting 
power. 

The  business  of  the  company  is  the  transporting  and 
marketing  of  oil.  The  company  owns  important  storage  and 
marketing  stations  throughout  the  German  Empire  and  up 
to  the  outbreak  of  the  war  operated  a  fleet  of  40  tank  ships, 
most  of  which  have  since  been  sold  to  Standard  Oil  Company 
of  New  Jersey  and  transferred  to  American  registry.  The 
company  is  the  dominant  factor  in  the  illuminating  oil  trade 
throughout  Germany,  in  which  it  has  had  only  two  im¬ 
portant  rivals,  namely,  the  Deutsche  Bank  group  of  com¬ 
panies,  headed  by  the  Steaua  Romana  Company  and  Bleich- 
roeder  banking  group  companies,  headed  by  the  Deutsche 
Erdol  Aktien  Gesellschaft 


90 


Standard  Oil  Company  of  New  Jersey 


Allied  with  the  D.  A.  P.  G.  are  a  group  of  smaller  Ger¬ 
many  marketing  companies  owned  by  the  Standard  Oil  Com¬ 
pany  of  New  Jersey,  known  as  the  Mannheim-Bremer  Petr. 
Aktien  Gesellschaft  (Mannheim-Bremen  Petr.  Company),  the 
Stettin-Amerikanische  Petr.  Import  Gesellschaft  (Stettin- 
American  Petr.  Importing  Company),  the  Konigsberger- 
Handels  Compagnie  (Konigsberg  Trading  Company),  and  the 
Amerilcanische  Petroleum  Anlagen  Gesellschaft  (American 
Petroleum  Depots  Company),  which  is  a  branch  of  the  Amer¬ 
ican  Petroleum  Company  of  Holland. 

Because  of  the  war  conditions  that  have  prevailed 
throughout  the  company’s  territory,  its  annual  report  for  1914 
is  of  more  than  passing  interest.  The  president  stated  that 
for  the  first  seven  months  of  the  year  under  review,  business 
proceeded  normally,  until  the  war  brought  decisive  changes 
in  the  operation  of  the  company,  as  it  did  to  the  entire  petro¬ 
leum  industry  of  Germany.  Describing  these  changes  in 
detail,  he  says: 

“Shortly  after  the  war  Germany  was  cut  off  from  all  sup¬ 
plies  of  any  consequence.  Import  from  America  was  impos¬ 
sible  after  a  few  weeks.  The  Galician  production  soon  was 
taken  by  the  Russians  and  from  Roumania  imports  were  pos¬ 
sible  only  in  such  limited  quantities  that  they  were  of  no 
proportion  in  comparison  to  the  demand.  As,  however,  at  the 
outbreak  of  the  war,  the  tankage  of  the  company  was  filled 
to  a  normal  degree  and  consequently  the  company  had  very 
large  stocks,  it  was  in  a  position  to  maintain  its  deliveries, 
although  it  was  necessary  to  make  certain  curtailments. 

“This  latter  measure  was  resorted  to  in  order  to  Insure 
that  the  most  essential  needs  could  be  met  in  case  the  war 
should  be  of  unusually  long  duration.  The  reason  this  curtail¬ 
ment  had  to  be  carried  out  to  the  extent  thought  necessary 
was  because  that  certain  municipal  authorities  which  ordi¬ 
narily  did  not  cover  their  requirements  from  the  D.  A.  P.  G. 
unexpectedly  approached  the  company  with  very  considerable 
demands,  inasmuch  as  their  former  sources  of  supply  were 
unable  to  furnish  the  required  quantities  either  from  their 
stocks  or  by  importation.  As  this  company  could  not  have 
anticipated  being  called  upon  for  such  large  deliveries,  it 
naturally  was  unprovided  for  this  contingency,  and  therefore 
the  company  was  obliged  to  give  preference  in  a  measure  to 
such  authorities  over  its  private  customers.” 

“The  company  has  continued  to  effect  its  deliveries  during 
the  war  at  the  same  prices  as  were  prevailing  during  times 
of  peace  and  thereby  prevented  any  material  rise  in  prices 
to  the  consumers  up  to  the  end  of  the  fiscal  year. 

“As  a  matter  of  course,  the  earnings  of  the  company  were 
affected  unfavorably  by  these  circumstances  and  this  effort 
will  be  more  marked  in  the  current  than  the  past  fiscal  year. 

“Of  the  many  tank  ships  of  the  company  that  were  on  the 
high  seas  at  the  outbreak  of  the  war,  all  but  one  were 
brought  into  safety.  The  one  in  question,  which  had  been 
put  into  commission  at  the  commencement  of  the  fiscal  year, 
was  captured  by  an.  English  cruiser  on  the  high  sea  and 
later  on  confiscated  as  a  prize.” 

Since  the  statement  was  issued  the  armies  of  the  Central 
Powers  hnvp  retrained  possession  of  the  Galician  fields  and 
water  transportation  to  and  from  Roumania  by  the  Danube 
River  was  re-ope^ed,  p-ivi^a-  German  and  Austrian  re¬ 

fineries  ample  sources  of  raw  materials. 


Foreign  Standard  Oil  Companies 


91 


The  company’s  earnings 
compare  as  follows: 


statement  and  financial  report 


1914  1913  1912 

(Marks)  (Marks)  (Marks) 

Brought  Forward .  8,594  88,349  32,653 

Operating  Income .  5,701,817  5,814,656  5,724,545 

Gross  Income .  5,710,411  5,903,005  5,757,198 

Less — Depreciation  Charges.  3,606,918  3,606,911  2,766,348 

Net  Profit .  2,103,493  2,596,093  2,990,849 

The  balance  sheet  of  the  company  sets  forth  the  following 
items: 


1914 

(Marks) 

Incorporated  Capital . .  .  9,000,000 


Reserve  Fund . . .  3,000,000 

Insurance  Fu'.d .  6,500,000 

Surplus  .  90,400,000 

Accounts  Receivable .  20,600,000 

Cash,  etc . 29,500,000 

Stocks  on  Hand .  15,600,000 

Real  Estate  Equipment,  etc.  11,700,000 
Marine  Equipment .  32,300,000 


1913 

(Marks'* 

9,000,000 

3,000,000 

4,945,000 

103,116,000 

13,120,000 

27,103,000 

25,327,000 

11,114,000 

44,321,000 


1912 
(Marks) 
9,000,000 
3,000,000 
3,921,000  \ 
95,214,000 
15,008,000 
28,109,000 
27,967.000 
10,724,000 
30.949,000 


The  directors  declared  a  dividend  of  225  marks  per  share 
(22%  per  cent.),  payable  out  of  1914  earnings. 

Romana-Americana  Company 


Capital — 25,000,000  lei  (equivalent  to  francs).  In  1913  the 
capital  was  increased  from  12,500,000  lei  by  a  100  per  cent, 
stock  dividend. 

The  company  owns  important  producing  properties  in  the 
principal  producing  areas  of  Roumania  and  also  operates  a 
large  and  modern  refinery.  The  company’s  product  is  sold 
throughout  Roumania,  the  Balkan  States  and  other  points  in 
the  Near  East,  as  well  as  throughout  Germany  and  Austria. 

The  growth  of  the  company’s  physical  operations  is  set 
forth  as  follows: 


Production  . 

Refinery  Consumption 
Refinery  Production... 


1914 

(Tons) 

420,531 

384,550 

382,480 


1913 

(Tons) 

333,228 

301,596 

299,462 


1912 

(Tons) 

206,147 

233,050 

225,737 


The  company’s  financial  statement  for  1914  sho-ws  tief 
profits  of  9.847,591  lei  for  the  Refinery  Department  and  5,- 
119,889  lei  for  the  Producing  Department,  making  total  n®*‘ 
profits  of  14,967,480  lei  or  francs,  from  which  the  director!? 
declared  a  dividend  of  40  per  cent,  or  10,000,000  lei,  equiva^ 
le»’t  to  $2,000,000.  The  balance  carried  forward  was  4,967,479 
lei,  which,  with  the  surplus  of  304,794  lei  remaining  after  the 
stock  dividend,  gave  the  company  a  surplus  of  5,272,274  lei 
at  the  outset  of  the  current  year.  From  1915  profits  a  divi- 
dent  of  25  per  cent,  was  declared. 

It  appears  that  in  spite  of  the  Balkan  wars  the  company 
enjoyed  a  most  profitable  year  in  1913,  while  the  1914  report 
states  that  the  yield  and  export  of  the  company’s  products 
had  experienced  a  considerable  advance.  Business  was  very 
remunerative  until  the  outbreak  of  the  general  European  war 
and  the  closing  of  the  Dardanelles,  which  caused  a  sudden 
cessation  of  the  company’s  activities. 

Following  the  invasion  of  Roumania  by  the  armies  of  the 
Central  Powers,  the  company’s  properties  are  reported  to 
have  been  destroyed  but  no  accurate  reports  of  the  extent  of 
the  actual  damage  have  been  received. 


92 


Standard  Oil  Company— California 


American  Petroleum  Company — Capital  7,850,000  florins 
($3,156,700)  is  the  principal  marketing  subsidiary  in  the 
Netherlands.  It  also  operates  in  portions  of  Western  Ger¬ 
many  and  Belgium.  It  has  several  subsidiaries.  It  has  a  fleet 
of  seven  tank  ships. 


Soci6t6  pour  le  vente  de  perole  ci-devant  H.  Rietli  &  Cie — 
(Company  for  the  sale  of  petroleum,  formerly  H.  Rieth  & 
Company),  is  the  company’s  principal  marketing  concern  in 
Belgium  and  Luxemburg.  It  has  several  sub-companies. 

Danske  Petroleums  Aktiese-lskab — (Danish  Petroleum  Com¬ 
pany)  is  the  marketing  subsidiary  of  the  company  in  Den¬ 
mark. 

Societa  Italo-Americana  pel  Petrolio — (Italian-American 

Petroleum  Company),  capital  $1,000,000,  is  the  marketing 
subsidiary  in  Italy,  where  an  extensive  business  is  conducted. 
The  company  has  large  storage  installations  and  operates  a 
plant  for  manufacturing  cans.  It  also  operates  a  fleet  of 
three  tank  ships. 


STANDARD  OIL  COMPANY  (California) 

The  Standard  Oil  Company  of  California  was  incorporated 
£n  1906  under  the  laws  of  California  to  consolidate  the  Stand¬ 
ard  Oil  Company  of  Iowa,  a  marketing  company,  and  the 
Pacific  Coast  Oil  Company,  which  was  organized  in  1879  and 
acquired  by  Standard  Oil  Interests  in  1900. 

Capital  Stock — $100,000,000  is  the  authorized  capitalization 
since  July  14,  1914,  when  the  stockholders  voted  on  a  resolu¬ 
tion  to  this  effect  passed  by  the  directors  on  January  6th. 
The  company  is  therefore  the  first  of  the  former  Standard 
Qil  subsidiaries  to  raise  its  capitalization  to  an  equality 
with  the  parent  company.  The  original  capital  was  $25,000,000 
but  after  dissolution,  the  stockholders  on  July  20,  1912. 

-authorized  an  increase  to  $50,000,000,  which  was  accomplished 
by  extending  subscription  rights  at  par  first  to  80  per  cent. 

•  of  holdings  and  thereafter  to  10  per  cent,  of  holdings.  On 
July  14,  1914,  the  stockholders  authorized  an  increase  of 

^authorized  capitalization  to  $100,000,000,  which  was  accom¬ 
plished  first  by  a  50  per  cent,  stock  dividend  and  thereafter 
by  a  33  1-3  per  cent,  stock  dividend. 

The  various  increases  of  the  company’s  outstanding  capital 
are  set  forth  in  the  following  table: — 


Aug. 

Feb. 

Apr. 

Apr. 


Outstanding 
Capitalization 
31  1912...  $25,000,000 

2,  1914 _  *45,183,993 

30,  1916...  49,686,665 

15,  1917...  74,529,983 

*2,500  shares  at  $200  per 
1913,  in  part  payment 
lands,  purchased  from 


Stock  Dividend 
or  Sub.  Rights 
at  Par 

80%  Sub.  Rights 
10%  Sub.  Rights 
50%  Stock.  Div. 
33  1-3%  Stk.  Div. 


New 

Capitalization 
$44,933,994 
49,686,655 
74,529,983 
99,373,310 
in  November. 


share  were  issued 
for  the  4,000  acres  of  producing 
the  Murphy  Oil  Company. 

Income  Tax  Ruling — By  resolution  of  the  Board  of  Direc¬ 
tors  of  the  company,  it  is  provided  that  the  stock  dividend 
declared  January  18,  191G,  shall  represent  surplus  profits  of 
the  company  prior  to  March  1,  1913,  amounting  to  $20,353,- 
068.34.  and  the  first  surplus  profits  earned  thereafter  up  to 
84.49oi259.40  and  that  the  stock  dividend  declared  January 
10  1917,  shall  represent  the  first  surplus  profits  of  the  com- 

pn-'v  earned  after  March  1,  1913,  over  and  above  $4,490,259.40. 


Standard  Oil  Company — California 


93 


In  view  of  this  action  of  the  board,  the  office  of  the  Com¬ 
missioner  of  Internal  Revenue  has  ruled  that  the  proportion 
of  the  surplus  of  the  company  earned  to  March  1,  1913,  and 
reflected  in  the  stock  dividend  declared  January  18,  1916, 
may  he  eliminated  by  stockholders  in  their  income  tax  re¬ 
turns  for  the  year  1916.  Therefore,  under  this  ruling  18.0743 
per  cent,  of  the  1916  stock  dividend  is  returnable  for  income 
tax  purposes,  and  the  remainder  of  the  1916  stock  dividend 
is  not  taxable. 

Dividends— Since  the  dissolution  an  initial  dividend  of  2% 
per  cent,  was  paid  on  November  15,  1912,  and  thereafter  a 
quarterly  rate  of  2%  per  cent,  has  been  maintained  through¬ 
out  all  the  increases  of  capital. 

Business — The  Standard  Oil  Company,  California,  repre¬ 
sents  m  its  organization  every  branch  of  the  oil  industry,  being 
engaged  in  the  producing,  refining,  transporting  and  market¬ 
ing  of  oil  and  its  by-products. 

Producing  Properties — Until  the  early  part  of  1913,  the 
company  was  a  large  purchaser  of  oil,  its  own  wells  furnish¬ 
ing  but  10,000  barrels  a  day.  Development  work  in  1913 
brought  success  in  all  fields  and  by  the  close  of  the  year 
the  bringing  in  of  a  series  of  gushers  had  raised  the  com¬ 
pany’s  production  for  that  year  to  a  daily  average  of  26,575 
barrels.  During  1916,  the  production  from  the  company’s 
own  wells  was  slightly  over  13,000,000  barrels,  the  daily  av¬ 
erage  being  35,632  barrels.  The  growth  of  the  company’s 
producing  and  pipe  line  business  is  shown  in  the  following 
table: — • 

Daily  Average  Average  Crude 


Production  Daily  Pipe  Oil  Stored 

Own  Wells  Dine  Runs  Dec.  31 

1916 .  35,632  Bbls.  75,944  RMs.  22,753,178  Bbls. 

1915 .  31,656  Bbls.  90,715  Bfs.  26,682,064  Bbls. 

1914 .  34,869  Bbls.  109,949  Bbls.  26,058,077  Bbls. 

1913 .  26,575  Bbls.  85,902  Bbls.  24,310,310  Bbls. 

1912 .  10,846  Bbls . 


In  November,  1913,  the  company  purchased  4,000  acres  of 
land  from  the  Murphy  Oil  Company.  Three  wells  on  this 
new  tract,  which  is  practically  undeveloped,  are  yielding  5,000 
barrels  daily.  Four  million  dollars  and  a  royalty  of  22  per 
cent,  was  the  consideration  for  this  purchase,  which  was  un¬ 
der'  consideration  at  the  time  by  the  Royal  Dutch  Shell 
Company. 

In  May,  1916,  the  company  purchased  the  oil  land  hold¬ 
ings  and  other  properties  of  the  Monte  Cristo  Oil  and  De¬ 
velopment  Company,  comprising  220  acres  in  the  main  Kern 
River  oil  field,  with  86  wells,  160  acres  in  the  Maricopa  dis¬ 
trict,  with  21  wells,  and  a  leasehold  of  20  acres  in  the  Whit- 
tier-Fullerton  field,  with  seven  wells.  The  total  production 
capacity  is  reported  at  2,000  barrels  a  day.  There  was  also 
Included  in  the  transaction  a  640-acre  undeveloped  tract  in 
the  Kern  River  and  Lost  Hills  district. 

Earlier  in  March,  1916,  the  company  purchased  from  the 
Coalinga  Oil  Company,  160  acres  in  the  Coalinga  field  and 
from  the  Vulcan  Oil  Company  102  acres  in  the  Lost  Hills 
district.  The  Coalinga  property  has  71  barrels  production 
from  nine  wells  and  the  Lost  Hills  property  was  producing 
408  barrels  from  ten  wells.  It  is  reported  also  that  the 
company  in  June,  1916,  leased  several  hundred  acres  in  the 
McKittrick  field. 

The  success  which  has  crowned  the  efforts  of  the  com¬ 
pany’s  production  department  is  the  belated  reward  of  $14,- 


94 


Standard  Oil  Company — California 


000,000  spent  in  exploration  and  development  work  before 
the  company’s  wells  netted  a  cent  of  profit. 

Refining  Properties — The  company  operates  three  refineries. 
That  at  Point  Richmond,  near  San  Francisco,  was  practically 
rebuilt  at  an  expenditure  of  $10,000,000  during  1912.  The 
secondary  refinery  at  El  Segundo,  near  Los  Angeles,  was 
completed  in  139  days  during  1913  and  the  Kern  River  refinery, 
near  Bakersfield,  was  completed  in  November,  1913.  The 
combined  capacity  of  the  three  refineries  is  about  95,000 
barrels  a  day  at  this  date  and  is  increasing  constantly,  as 
building  operations  never  have  ceased  since  the  company 
began  independent  operations. 

The  Point  Richmond  refinery  on  San  Francisco  Bay  is 
one  of  the  most  complete  in  the  world.  It  spreads  over  435 
acres  and  employs  1,700  men.  65,000  barrels  of  crude  oil  are 
refined  daily.  There  are  117  big  stills,  adequate  condensers 
and  receiving  houses,  41  agitators,  182  storage  tanks,  an 
engine  house  capable  of  developing  22,000  horsepower;  an 
acid  plant  manufacturing  170,000  pounds  of  sulphuric  acid 
daily  for  purifying  oils;  a  grease  plant;  an  asphaltum  plant; 
a  can  factory  with  a  capacity  of  25,000  five-gallon  cans  a 
day;  a  cooperage  works;  a  machine  shop,  a  tank  car  repair 
shop,  a  ship  yard,  and  pumping  houses,  and  interconnecting 
the  entire  plant  runs  a  maze  of  pipe  lines,  360  miles  in  all, 
through  which  are  handled  the  crude  and  many  of  the  refined 
oils,  as  well  as  steam,  air  and  fresh  and  salt  water. 

From  the  refinery  the  oils  are  run  by  gravity  directly  to 
the  railroad  yards,  where  50  tank  cars  can  be  loaded  at 
once.  Other  pipe  lines  convey  oil  to  the  company’s  pier 
extending  a  mile  out  into  the  bay,  where  the  company's 
ships  and  barges  are  loaded.  There  is  a  second  shipping  pier 
at  Point  Orient,  five  miles  below  the  refinery. 

The  company  recently  has  purchased  100  acres  imme¬ 
diately  adjoining  its  refinery  to  provide  for  further  ex¬ 
tensions. 

To  obviate  fire  danger,  oil  for  the  Richmond  refinery  is 
stored  at  the  tank  farm  at  San  Pablo,  which  covers  1,200 
acres.  The  company  now  has  storage  capacity  there  for 
25,000,000  barrels  of  oil  and  is  increasing  its  tankage  facilities. 

The  El  Segundo  refinery  on  the  ocean  front  near  Los 
Angeles  is  only  twenty-three  miles  distant  from  the  Fullerton 
field,  in  which  the  company  lately  has  brought  in  several 
gusher  wells.  The  plant  has  a  daily  capacity  of  30,000  bar¬ 
rels,  storage  for  2,800,000  barrels  of  refined  oils  and  1,100,000 
barrels  of  crude  oil,  and  additional  tankage  is  under  con¬ 
struction.  There  is  also  an  acid  plant  with  a  daily  output 
of  24,000  pounds  and  an  asphalt  plant  with  a  daily  capacity 
of  75  tons.  Loading  racks  for  tank  cars  and  a  shipping  pier 
adjoin  the  refinery,  providing  facilities  for  loading  360  tank 
cars  daily.  A  cooperage  shop,  casing  plant  and  machine 
shop  complete  the  equipment  and  make  the  refinery  as  up- 
to-date  as  any  in  the  country.  Acreage  for  extending  the 
plant  to  six  times  its  present  capacity,  when  necessary,  has 
been  acquired  recently. 

The  new  Bakersfield  refinery,  with  a  present  capacity  of 
10,000  barrels,  is  situated  in  the  heart  of  one  of  the  oldest 
producing  districts  and  is  supplied  by  the  company’s  own 
wells.  The  Kern  River  oil  is  fourteen  degrees  gravity  and 
under,  and  this  plant  will  specialize  in  asphaltum  products. 
The  company  has  16,000.000  barrels  of  heavy  oil  in  storage 
in  the  Kern  River  district. 

The  company  is  installing  a  very  large  gasolene  com¬ 
pression  plant  on  its  McNee  properties  in  the  Midway  field. 


Standard  Oil  Company — California 


95 


The  plant  will  handle  12,000,000  cubic  feet  of  natural  gas 
daily  and  will  yield  between  15,000  and  20,000  gallons  of 
gasolene  daily. 

Transportation  Properties — The  company  operates  a  total 
of  1,100  miles  of  pipe  line.  The  main  trunk  lines  extend  for 
350  miles  through  the  San  Joaquin  Valley  from  Midway  to 
Point  Richmond,  with  a  branch  line  to  Coalinga.  There  are 
three  lines  paralleling  each  other,  two  eight-inch  lines  and 
one  twelve-inch  line,  the  last  just  completed.  The '  total 
capacity  of  these  lines  is  80,000  barrels  a  day.  From  the 
Santa  Maria  field  to  Port  Hartford  there  is  an  eight-inch 
line,  40  miles  in  length. .  From  the  Newhall  field  to  Ventura 
runs  forty  miles  of  four-inch  line  and  the  twenty-three  miles 
between  the  Whittier-Fullerton  districts  to  El  Segundo  it 
transversed  by  two  six-inch  lines  and  an  eight-inch  line 
recently  completed.  The  combined  capacity  of  the  company’s 
lines  is  in  excess  of  100,000  barrels  a  day. 

During  1913,  the  California  legislature  passed  a  law  requir¬ 
ing  all  pipe  lines  to  become  common  carriers.  Although  pro¬ 
testing  that  the  law  was  unjust,  as  it  might  deprive  it  of 
the  use  of  lines,  which  it  had  built  solely  to  transport  it« 
own  oil,  the  company  accepted  the  law  and  was  the  only 
pipe  line  company  in  the  state  to  do  so.  The  other  companies 
have  appealed  to  the  Federal  Courts  against  the  enforcement 
of  the  statute. 

For  water  transportation  the  company  operates  a  fleet  of 
thirty  vessels,  consisting  of  ocean-going  tankers,  barges,  river 
boats,  tugs  and  launches,  ranging  in  carrying  capacity  from 
500  barrels  to  80,000  barrels.  The  “Richmond”  and  a  sister 
ship,  the  “J.  A.  Moffett,”  of  60,000  barrels  carrying  capacity, 
were  joined  during  1916  by  the  “D.  G.  Scofield”  of  8,704  gross 
tonnage  with  carrying  capacity  for  80,000  barrels  of  oil,  and 
“La  Primera,”  a  steamship  of  612  tons,  for  carrying  package 
goods  to  the  Orient.  Three  other  tankships  of  8,000  tons, 
with  S5.000  barrels  capacity  are  under  construction  for  the 
company  at  the  Union  Iron  Works,  San  Francisco.  With  the 
delivery  of  these  later  vessels,  the  company’s  fleet  will  repre¬ 
sent  a  total  carrying  capacity  of  nearly  750,000  barrels  of  oil. 

The  company’s  fleet  is  constituted  as  follows: 

Carrying  Capacity 


(Barrels) 

s.  s. 

“D.  G.  Scofield” . 

.  Coastwise  &  Foreign 

80,000 

s.  s. 

“Richmond”  . 

.Coastwise  &  Foreign 

65,000 

s.  s. 

“J.  A.  Moffat” . 

.Coastwise  &  Foreign 

65,000 

s.  s. 

“Acme”  . 

.Coastwise  &  Foreign 

80,000 

s.  s. 

“D.  G.  Scofield” . 

.Coastwise  &  Foreign 

80,000 

s.  s. 

"Capt.  A.  F.  Lucas”.. 

.  Coastwise  &  Foreign 

40,000 

s.  s. 

“Col.  E.  L.  Drake”... 

.  Coastwise  &  Foreign 

40,000 

s.  s. 

“El  Segundo”  . 

.Coastwise  &  Foreign 

34,000 

s.  s. 

“Ascunsion”  . 

.Coastwise  &  Foreign 

21,000 

s.  s. 

“Atlas”  . 

.Coastwise  &  Foreign 

16,000 

s.  s. 

“Maverick”  . 

.Coastwise  &  Foreign 

12,000 

s.  s. 

“George  Loomis” . 

.Coastwise  &  Foreign 

7,000 

s.  s. 

“La  Primera”  . 

.  Coastwise  &  Foreign 

Case  Oil 

Barge  S.  O.  Co.  No.  95 . 

.Coastwise  &  Foreign 

48,000 

Barge  S.  O.  Co.  No.  93 . 

.Coastwise  &  Foreign 

28,000 

Barge  S.  O.  Co.  No.  91 . 

.  Coastwise  &  Foreign 

23,000 

Barge  No.  1 . 

4,500 

Barge  No.  2 . 

800 

Barge  No.  3 . 

2,000 

Barge  No.  4 . 

5,500 

96 


Standard  Oil  Company — California 


Barge  No.  5 . River  2,200 

Barge  No.  6 . Harbor  650 

Barge  No.  7 . Harbor  5,500 

Barge  No.  8 . Harbor  2,200 

Gasolene  Barge  “Petroleum”  . Harbor  400 

Gasolene  Barge  “Petroleum”  No.  2 . Harbor  1,200 

Gasolene  Barge  “Pico”  . Harbor  1,200 

Stern  Wheeler  “Petroleum”  No.  3 . River  1,500 

Gasolene  Barge  “Contra  Costa” . Harbor  7,500 

Gasolene  Barge  “Benecia”  . Harbor  2,200 

Stern  Wheeler  “San  Jose” . River  500 

Tug  “Standard  No.  1” . Harbor  - 

Freight  &  Launch  “Dispatch” . Harbor  - 


Two-thirds  of  the  company’s  output  of  illuminants  is  ex¬ 
ported,  mostly  to  the  Orient,  ships  of  the  Standard  Oil  Company 
of  New  York  loading  at  Port  Richmond  for  China  and  Japan. 
Twenty-five  per  cent,  of  the  American  oil  shipped  to  China 
last  year  went  from  California  and  all  but  a  few  cargoes 
was  furnished  by  Standard  Oil  Company  of  California.  The 
company  also  furnished  sixty  per  cent,  of  the  American  oil 
that  went  to  Japan.  Cargoes  of  the  company’s  illuminants 
went  last,  year  to  British  India  and  the  Dutch  Indies.  The 
company  also  has  worked  up  a  substantial  trade  in  lubricants 
in  Australia. 

Since  the  outbreak  of  the  war  the  heavy  export  demand 
for  gasolene  and  lubricants  brought  the  company  into  sup¬ 
plying  cargoes  to  England  and  the  Richmond  with  a  fleet 
of  barges  was  sent  through  the  Panama  Canal.  Recently 
owing  to  the  closing  of  the  canal,  the  company  was  forced  to 
send  several  tank  car  express  trains  from  San  Francisco  to 
New  York,  each  train  of  25  cars  carrying  750,000  gallons  of 
lubricating  oil. 

The  company  markets  gasolene  and  engine  and  stove  dis¬ 
tillates  in  Central  and  South  American  countries.  Through 
a  working  agreement  with  the  new  International  Petroleum 
Company,  Ltd.,  a  Standard  Oil  Company  of  New  Jersey 
subsidiary  and  the  Lobitos  Oilfields,  Ltd.,  both  operating  in 
the  Peruvian  fields,  these  companies  ship  high  grade  crude  to 
Point  Richmond  in  their  own  vessels  and  carry  back  fuel 
residuum,  which  they  distribute  at  fuel  stations  along  the 
west  coast  from  Callao  to  Valparaiso. 

The  company  maintains  an  extensive  marketing  organiza¬ 
tion  for  the  distribution  of  its  output.  There  are  fifteen 
main  supply  stations  between  Nome,  Alaska,  and  San  Diego, 
Cal.,  and  150  subsidiary  stations  from  which  refined  oils  are 
distributed  through  contiguous  territory  by  the  company’s 
tank  wagons.  The  domestic  business  covers  the  Pacific  slope 
stations,  Alaska  and  the  Hawaiian  Islands,  and  the  com¬ 
pany’s  export  stations  are  located  through  Japan,  India, 
Java  and  the  West  Coast  of  Central  and  South  America. 
In  October,  1914,  the  company  purchased  all  the  marketing 
stations  throughout  California  of  the  National  Supply  Com¬ 
pany  and  thereby  gained  direct  control  of  the  retail  market 
of  gasolene  throughout  the  state. 

The  company  claims  the  distinction  of  having  inaugurated 
the  Service  Station  idea,  whereby  gasolene  is  sold  direct  to 
the  consumers.  The  company  has  more  than  300  of  these 
stations  in  operation  and  is  continually  adding  to  the  number. 

The  company  now  contemplates  improving  and  expanding 
its  refining  facilities  for  the  manufacture  of  benzol  from 
crude  oil.  Benzol  is  the  basis  of  high  explosives  and  there 
will  be  an  extensive  market  for  it  for  several  years  by  which 


Standard  Oil  Company — California 


97 


time  the  company  expects  to  have  perfected  processes  -of  Its 
own  for  the  manufacture  of  analine  dyes  from  benzol.  Its 
extensive  acid  plants  place  it  in  an  exceptionally  advantage¬ 
ous  position  to  develop  this  new  branch  of  the  petroleum 
industry. 

Standard  Oil  Company,  California’s,  financial  statement 
for  1916  compares  as  follows: — 


Net  Profits . 

Depreciation  . 

Available  for  Dividends 
Dividends  . .• . 

Balance  to  Surplus . 


Assets: 

Plant  . 

Other  Investments.  . 

Inventories  . 

Accounts  Receivable 
Deferred  Charges... 
Cash  . 


Balance 


Total  Assets. .  . 
Inabilities: 
Capital  Stock.... 
Premium  Account 
Accounts  Payable 
Surplus^  . 


1916 

$21,263,520 

3,658,216 

$17,605,304 

6,831,915 


1915 

$12,974,655 

3,444,709 

$9,529,946 

4,968,666 


$10,773,389  $4,561,280 


Sheet 


1916 

$72,010,645 

99,366 

26,166,272 

8,031,078 

445,509 

2,646,755 


1915 

$65,834,282 

99,369 

25,017,147| 

5,293,155 

312,716 

1,986,663 


.  $109,400,258  $98,543,332 


$74,529,983 

250,000 

3,837,952 

30,782,324 


$49,686,655 

250,000 

3,754,414 

44,852,263 


Total  Liabilities 


$109,400,258  $98,543,332 


Analysis  of  Surplus 


Surplus,  January  1,  1916 .  $44,852,2Q3 

Less  Cash  Dividends  Paid .  6,831,915 

Stock  Dividend .  24,843,328  ; 

Net  . 13,177,020 

Profit  for  Year .  17,605,304 

Surplus,  December  31,  1916 .  30,782,324 


Net  earnings  after  depreciation  were  at  the  rate  of  23.6 
per  cent,  on  the  $74,529,983  capital  stock  outstanding  at  the 
close  of  the  year  and  at  the  rate  of  17.6  per  cent,  on  the 
$100,000,000  capital  which  will  shortly  be  issued. 

In  his  statement  to  the  shareholders  President  Scofield 
says : — 

“The  earnings  for  the  year  after  deducting  all  operating 
and  marketing  expenses  were  $21,263,520.02.  From  this  we 
have  written  off  for  depreciation  in  all  departments,  $3,658,- 
216.28,  leaving  the  net  profit  of  the  business  after  deprecia¬ 
tion,  $17,605,303.74,  or  about  16%  per  cent,  on  the  capital 
and  surplus  as  of  December  31,  1916. 

“Cash  dividends  were  paid  to  the  stockholders  during  the 
year  at  the  rate  of  ten  per  cent,  per  annum,  amounting  on 
the  issued  stock  to  $6,831,915.13,  and  a  stock  dividend  of 
$24,843,327.74,  and  there  has  been  carried  to  Surplus  Ac¬ 
count,  $10,773,388.61,  leaving  the  Surplus  Account  as  of  De¬ 
cember  31,  1916,  $30,782,323.89. 

“During  the  year  our  Plant  Account  was  increased  in  all 
departments  at  an  expenditure  for  new  construction  and  ad¬ 
ditions  to  our  producing  department  holdings  of  $9,834,579.54. 


98 


Standard  Oil  Company — California 


All  the  physical  plant  of  the  company  has  been  maintained 
in  first-class  condition  and  working  efficiency. 

“During  the  year  1916,  the  crude  oil  production  of  the 
company  from  its  own  properties  was  slightly  over  13,000,000 
barrels,  or  a  daily  average  of  35,632  barrels,  or  an  increased 
daily  average  of  3,976  barrels  over  the  production  of  1915. 
The  average  daily  production  for  December,  1916,  was  38,811 
barrels.  There  was  added  to  our  producing  properties  dur¬ 
ing  the  year,  936  acres  by  purchase  in  fee  and  15,601  acres 
in  leasehold. 

“Our  own  stocks  of  crude  oil  and  its  equivalent  in  storage 
December  31,  1916,  were  22,753,178  barrels,  or  a  decrease  of 
3,928,886  over  December  31,  1915. 

•  “The  marine  department  added  to  its  fleet  the  tank 
steamer  ‘D.  G.  Scofield,’  of  80,000  barrels  capacity,  and  the 
gasolene  barge  ‘Pico,’  for  use  in  San  Pedro  harbor.  The  total 
number  of  bulk  barrels  transported  by  our  fleet  during  1916 
was  over  15,250,000. 

“The  sales  department  added  to  its  plant  forty-two  new 
sub-stations,  and  twenty-three  service  stations,  and  to  its 
delivery  equipment  329  autos  and  autotrucks. 

“Our  average  daily  pipe-line  runs  from  wells  during  1916 
were  75,944  barrels,  as  against  90,715  for  1915.  During  1915, 
we  were  exchanging  with  the  Kern  Trading  &  Oil  Company 
(Southern  Pacific  Company)  over  12,000  barrels  per  day  of 
fuel  oil  for  its  refinable  crudes,  an  arrangement  that  termin¬ 
ated  on  December  31st  of  that  year. 

“Of  the  accounts  payable,  the  balance  due  the  Murphy  Oil 
Company  on  the  purchase  of  its  property  has  been  reduced 
to  $1,000,000,  half  of  which  is  payable  during  1917,  the  bal¬ 
ance  in  1918.  The  company  had  no  other  indebtedness,  ex¬ 
cept  the  current  accounts  for  December,  1916,  which  were 
paid  in  January,  1917. 

“The  cash  balance  on  December  31,  1916,  was  $2,646,755.47. 

“During  the  year,  owing  to  the  falling  off  in  the  general 
production,  crude  oil  prices  in  California  materially  ad¬ 
vanced,  the  base  price  as  of  December  31,  1915,  being  forty- 
three  cents  per  barrel,  as  against  seventy-three  cents  per 
barrel  on  December  31,  1916,  or  an  advance  of  70  per  cent. 
But  in  accordance  with  our  custom,  our  own  inventories  of 
crude  oil  and  products  in  storage  on  December  31,  1916, 
amounting  to  $26,166,271.87,  have  been  taken  at  their  costs 
and  will  appear  in  the  profits  as  they  are  disposed  of. 

“The  total  value  of  our  sales  of  all  products  for  the  year 
showed  an  increase  of  45  per  cent,  over  that  of  1915,  and 
notwithstanding  our  export  sales  of  refined  oil  to  the  Far 
Bast  were  considerably  diminished  by  lack  of  transportation, 
our  general  export  business  as  a  whole  shows  a  very  marked 
increase  in  volume  over  that  of  1915,  and  reached  a  total 
of  22  per  cent,  in  value  of  our  gross  sales.” 

It  is  interesting  to  study  the  growth  of  the  company’s  in¬ 
vested  capital  and  current  assets  over  the  last  five  years  of 
independent  operation.  This  is  shown  comparatively  in  the 
following  table: — 


Capital  Net  Current  Cash  New  Plant 
Assets  Assets  Dividends  Investment 

1916 .  $72,110,011  $33,451,662  $6,831,915  $9,834,579 

1915 .  65,933,651  28,855,267  4,968,666  4,126,309 

1914 .  65,495,338  24,632,299  4,856,098  6,672,223 

1913 .  58,933,865  21,588,870  4,493,399  *20,502,115 

1912 .  38,431,750  26,698,246  1,123,350  7,906,577 


♦Includes  $8,474,659  for  appreciation  in  value  of  the  com¬ 
pany’s  producing  properties. 


Standard  Oil  Company — Indiana 


99 


On  December  31,  1911,  net  assets  were  $39,213,195  and  on 
December  31,  1916,  net  assets  were  $105,312,307,  showing  a 
gain  of  $66,099,112  in  the  five  years. 

At  the  annual  meeting  March  7,  1917,  the  company  cre¬ 
ated  the  office  of  Chairman  of  the  Board  and  re-elected  re¬ 
tiring  directors.  D.  G.  Scofield,  who  had  directed  the  com-f 
pany  through  its  period  of  successful  expansion,  was  elected 
chairman. 

Officers  and  Directors — Chairman — D.  G.  Scofield. 

President — W.  R.  Rheem. 

Senior  Vice-President — K.  R.  Kingsbury. 

Vice-President — W.  S,  Miller. 

Vice-President  and  Director  of  Producing — 

F.  H.  Hillman. 

Treasurer  and  Director  of  Mfg. — R.  J.  Hanna. 

Sec’y  and  Director  of  Pipe  Lines — H.  M.  Storey. 


STANDARD  OIL  COMPANY  (Indiana) 

The  Standard  Oil  Company  (Indiana)  was  incorporated  In 

1889. 

Capital  Stock — Authorized,  $100,000,000;  outstanding,  $30,- 
000,000;  par  value,  $100.  The  capital  stock  was  originally 
$500,000,  having  been  increased  to  $1,000,000  in  1892.  In 
March,  1912,  the  stockholders  approved  the  increase  in  stock 
from  $1,000,000  to  $30,000,000  by  the  payment  of  a  2900-per 
cent,  dividend  in  capital  stock,  which  was  distributed  on 
May  15,  1912.  On  March  1,  1917,  the  stockholders  approved 
an  increase  of  the  capital  stock  to  $100,000,000  and  voted  to 
amend  the  company’s  charter  so  that  it  could  engage  in  the 
business  of  producing  crude  oil  and  transporting  oil  and  its  by¬ 
product  by  pipe  line,  ships  and  tank  cars.  No  announcement 
has  been  made  as  to  when  or  how  the  capital  will  be  in¬ 
creased. 

Dividends — Since  the  dissolution,  dividends  have  been  de¬ 
clared  payable  as  follows:  1912,  August  31st,  3  per  cent,  (in¬ 
itial);  November  30th,  3  per  cent,  and  7  per  cent,  extra;  1913, 
February  28th,  3  per  cent,  and  4  per  cent,  extra;  May  31st, 

3  per  cent  and  3  per  cent,  extra;  August  31st,  3  per  cent,  and 

4  per  cent,  extra;  November  29th,  3  per  cent.  and_  9  per  cent, 
extra;  1914,  February  28th,  3  per  cent,  and  4  per  cent,  extra; 
May  29th,  3  per  cent,  and  3  per  cent,  extra;  August  31st, 
3  per  cent,  and  3  per  cent,  extra;  November  30th,  3  per  cent, 
and  3  per  cent,  extra;  1915,  12  per  cent.  (3  per  cent  quarter¬ 
ly);  1916,  12  per  cent.  (3  per  cent,  quarterly);  1917,  Febru¬ 
ary  28,  3  per  cent  and  3  per  cent,  extra;  May  28,  3  per  cent, 
and  3  per  cent,  extra. 

Properties — The  company  owns  and  operates  refineries  at 
Whiting,  Ind. ;  Sugar  Creek,  Mo. ;  Alton,  Ill. ;  Casper,  Wyo., 
and  Greybull,  Wyo.,  each  of  which  is  connected  with  exten¬ 
sive  pipe  line  systems.  The  refinery  at  Whiting  is  within  a 
short  distance  of  Chicago  and  Lake  Michigan,  and  is  regarded 
as  one  of  the  largest  and  most  modern  plants  in  the  world. 
The  plant  is  completely  equipped  for  the  production  of  every 
product  derivable  from  crude  oil,  and  the  buildings  occupy 
nearly  400  acres  of  land.  The  capacity  of  the  plant,  which 
includes  92  crude  stills  and  200  Burton  process  pressure  stills, 
is  about  60,000  barrels  of  crude  daily. 

The  refinery  at  Wood  River,  Illinois,  near  upper  Alton,  on 
the  Mississippi  River,  is  said  to  be  one  of  the  most  modern 
refineries  in  this  country.  The  plant  had  originally  sixteen 
1,000-barrels  stills,  but  there  were  added  between  1913  and 
1916  more  than  100  additional  stills  for  the  production  of 


100 


- 


.'Standard  Oil  Company — Indiana 


motor  spirit.  The  plant  occupies  about  400  acres  of  ground, 
and  additional  land  has  recently  been  purchased  to  provide 
a  frontage  on  the  river.  The  capacity  is  40,000  barrels  of 
refined  product  daily.  The  company  has  added  extensive 
improvements  recently  to  enlarge,  the  capacity  of  this  plant 
for  the  refining  of  Oklahoma  oil. 

The  Sugar  Creek  Refinery  is  located  near  Kansas  City. 
The  plant  covers  about  115  acres,  has  a  capacity  of  12,000  bar¬ 
rels  and  specializes  in  gasolene,  motor  spirits  and  fuel  oil. 
Efforts  to  oust  the  company  from  operating  in  Missouri  were 
successfully  resisted  in  June,  1913,  and  with  the  suspension  of 
the  Supreme  Court’s  writ  of  ouster,  the  management  announced 
that  $1,000,000  would  be  spent  in  enlarging  the  Sugar  Creek 
refinery  and  $500,000  more  in  building  up  marketing  stations 
throughout  the  state. 

The  company  also  has  built  a  $1,000,000  refinery  at  Casper, 
Wyoming,  adjacent  to  the  Shannon  and  Salt  Creek  oil  fields, 
where  seventy  stills  are  now  in  operation.  Sixty  of  these  are 
devoted  to  the  manufacture  of  motor  spirits,  the  company’s 
new  substitute  for  gasolene,  and  ten  of  them  to  make  petro¬ 
leum  coke,  a  by-product  from  refinery  waste  used  to  make 
electric  carbons.  The  company  has  a  contract  with  the  Mid¬ 
west  Refining  Company  to  supply  it  with  crude  oil  and  refin¬ 
ery  waste. 

Since  February,  1913,  the  company  has  had  an  enormous 
growth  in  business  through  the  installation  at  its  refineries 
of  a  new  process  for  cracking  oil  by  which  a  high  per¬ 
centage  of  gasolene  is  obtained. 

The  process,  which  was  devised  by  Dr.  Wm.  M.  Burton, 
one  of  the  company’s  directors,  has  opened  the  way  for  break¬ 
ing  up  the  hydro-carbons  of  petroleum  into  w'hatever  com¬ 
bination  is  needed  and  condensing  them  under  compression. 

In  the  process,  the  vapor,  instead  of  passing  into  con¬ 
densers,  as  previously,  is  subjected  to  high  temperature  under 
a  pressure  of  eighty  pounds  to  the  square  inch.  Since  the 
installation  of  these  pressure  stills,  the  company  now  runs 
the  oil  from  its  crude  stills,  which  formerly  was  used  for 
fuel  oil,  through  the  Burton  stills  and  obtains  a  high  yield  of 
low  gravity  gasolene,  which  undergoes  a  sweetening  process 
and  is  then,  mixed  with  the  first  run  gasolene. 

Since  the  dissolution.  Standard  Oil  Company,  Indiana,  has 
expended  more  than  $20,000,000  in  refinery  expansion  and  in 
building  up  its  marketing  service.  Through  its  Burton  Pro¬ 
cess  stills,  it  has  become  the  leading  manufacturer  of  the 
world  in  the  gasolene  field,  the  present  output  of  motor  fuel 
from  its  five  refineries  being  around  1,500,000  gallons  a  day. 
During  1916  the  company  produced  and  marketed  450,000,000 
gallons  of  gasolene  or  about  25  per  cent,  of  the  total  output 
of  the  country. 

An  officer  of  the  company  testified  recently  before  the 
Federal  Trade  Commission  that  the  company’s  gasolene  out¬ 
put  was  running  20,000  barrels  monthly  below  its  marketing 
demands. 

The  Standard  Oil  Company,  Indiana,  maintains  an  ex¬ 
tensive  inarketing  organization,  and  has  stations  throughout 
Indiana,  Michigan,  Illinois,  Wisconsin,  Minnesota,  Iowa,  North 
and  South  Dakota,  Kansas  and  Missouri.  The  company  con¬ 
trols  about  50  per  cent,  of  the  business  of  this  territory  in  the 
face  of  the  keenest  competition  from  nearly  100  refineries  in 
the  Mid-Continent  field. 

In  addition  to  its  enormous  gasolene  business  the  com¬ 
pany  turns  out  nearly  every  by-product  of  crude  oil.  Tt.  has 
the  largest  candle  works  in  the  country,  outside  of  the  Pratt 


Standard  Oil  Company — Indiana 


101 


Works  of  the  Standard  Oil  Company  of  New  York.  Its  wax 
business  has  been  particularly  heavy  since  the  outbreak  of 
the  war.  The  company  recently  has  entered  the  medicinal 
oil  field  and  50,000  sample  bottles  of  its  preparation  called 
“Stanolax”  were  distributed  among  physicians  and  hospitals 
throughout  the  country. 

Another  source  of  profit  to  the  company  is  its  royalties 
from  leasing  the  rights  to  use  the  Burton  process.  Standard 
Oil  of  Kansas,  Imperial  Oil  Company,  Solar  Refining,  Tide¬ 
water  Oil  Company.  Standard  Oil  Company  of  Ne\y  Jersey 
and  Continental  Oil  Company,  are  now  lessees  of  the  process. 

The  company’s  financial  statement  for  1916  compares  as 
follows: — 

Assets:  1916  1915 

Real  Estate .  $4,220,743  $3,758,974 

Construction  . ' . *  *28,642,318  22,548,533 

Personal  Property .  4,555,574  3,736,647 

Accounts  Receivable .  6,917,148  9,418,743 

Securities  .  13,142,028  . 

Merchandise  .  25,538,088  19,047,659 

Cash  .  3,399,092  2,094,365 

Total  Assets .  $86,414,991  $60,604,925 

Liabilities: 

Capital  Stock...,. . .  $30,000,000  $30,000,000 

Accounts  Payable .  3,178,334  3,811,883 

Surplus  .  53,236,657  26,793,042 


Total  Liabilities .  $86,414,991  $60,604,925 


*  After  allowing  for  $10,465,207  depreciation. 

Earnings  of  $30,043,615,  or  at  the  rate  of  100  per  cent, 
after  depreciation  and  sundry  adjustments  are  indicated  by 
an  increase  in  surplus  of  $26,443,615  after  paying  $3,600,000 
in  dividends.  •  This  compares  with  profits  of  53  per  cent, 
in  1915. 

The  company’s  enormous  outlay  on  construction  is  re¬ 
vealed  by  a  growth  of  $6,093,735  in  Plant  Account  during  the 
year  and  for  the  first  time  the  company  states  its  accrued 
depreciation  at  $10,465,207.  Working  capital  at  the  close  of 
1916  was  $45,818,022  compared  with  $26,748,884  at  the  close 
of  the  previous  year.  The  surplus  of  $53,236,657  of  which 
more  than  $20,000,000  is  in  net  cash  assets  explains  the 
company’s  desire  to  increase  its  authorized  capital  to  $100,- 
000,000  and  obtain  a  more  liberal  charter  enabling  it  to  en¬ 
gage  in  the  production  and  transportation  of  the  raw  ma¬ 
terial  of  the  industry. 

Reviewing  the  operations  of  the  company  since  the  disso¬ 
lution  furnishes  the  following  comparison: 


Capital  Net  Current 

Net  Profits  Assets  Assets  Surplus 

1916 .  $30,043,615  *$37,418,635  $45,808,022  $53,236,657 

1915 .  15,898,376  30,044,154  26,748,884  26,793,042 

1914 .  6,590,924  25,340,612  19,044,048  14,394,666 

1913 .  14,687,696  21,698,423  23,605,319  15,303,742 

1912 .  fl2, 000,000  19,133,445  21,082,602  10,216,046 


*After  accrued  depreciation  of  $10,465,207.  fEstimated. 

Net  assets  on  December  31,  1916,  were  $83,236,657,  which 
compares  with  net  assets  of  $33,718,641  on  December  3.J.,  1912, 
and  net  assets  of  $24,323,937  on  December  31,  1906,  indicating 
a  growth  of  $49,518,016  in  the  last  five  years  of  independent 
operation,  compared  with  a  growth  of  $9,394,704  in  the  pre¬ 
vious  five  years. 


102 


Standard  Oil  Company — Kansas 


Officers — President — W.  P.  Cowan. 

Vice-President — Lauren  J.  Drake. 

Secretary  and  Treasurer — G.  W.  Stahl. 

Asst.  Secretary  and  Treasurer — Charles  D.  Gano. 

Directors — W.  P.  Cowan,  L.  J.  Drake,  Alfred  D.  Eddy,  Geo. 
W.  Stahl,  Wm.  M.  Burton. 

Transfer  Office — 7  2  West  Adams  Street,  Chicago,  Illinois. 


STANDARD  OIL  COMPANY  (Kansas) 

The  Standard  Oil  Company  of  Kansas  was  incorporated  In 
1892  under  the  laws  of  Kansas. 

Capital  Stock — The  capital  stock  is  $2,000,000.  Par  value, 
$100.  The  original  capital  was  $500,000,  which  was  increased 
in  1906  to  $1,000,000,  and  in  May,  1913,  to  $2,000,000. 

Dividends—  Since  the  dissolution,  dividends  nave  iiren  paid 
as  follows:  1912,  December  14th,  3  per  cent,  and  2  per  cent, 
extra;  1913,  February  28th,  3  per  cent,  and  4  per  cent,  extra; 
June  30th,  100  per  cent,  and  10  per  cent,  extra;  September 
28th,  3  per  cent,  and  7  per  cent,  extra;  November  29th. 

3  per  cent,  and  10  per  cent,  extra;  1914,  February  28th,  3  per 
cent,  and  7  per  cent,  extra:  June  '15th,  3  per  cent.;  1915, 
12  per  cent.  (3  per  cent,  quarterly);  1916,  12  per  cent.  (3  per 
cent,  quarterly) ;  1917,  February  20,  3  per  cent,  and  2  per  cent, 
extra;  May  20,  3  per  cent,  and  2  per  cent,  extra. 

In  November,  1916,  the  stockholders  approved  a  resolution 
to  amend  the  charter  of  the  company  to  enable  it  to  engage 
in  the  production  and  transportation  of  crude  oil.  Up  to 
May  1,  1917,  the  company  had  not  announced  the  acquisition 
of  producing  properties. 

Properties — The  company’s  refinery  was  equipped  during 
1913  at  a  cost  of  $500,000  with  twelve  high  pressure  stills  of 
the  new  tower  variety  for  the  manufacture  of  “motor  spirits’’ 
and  forty  stills  of  300-barrel  capacity. 

Late  in  1915,  the  company  began  the  erection  of  twenty- 
two  fire  stills  and  five  tar  stills  and  three  150-feet  cement 
smoke  stacks. 

During  1916,  27  additional  stills  were  erected  to  help  re¬ 
lieve  the  gasolene  stringency,  making  a  total  of  92,  of  which 
60  are  under  the  Burton  patents,  with  the  result  of  doubling 
the  capacity  of  its  gasolene  production.  To  conserve  its  basic 
supplies,  the  company  is  not  making  fuel  oil  for  the  market. 
The  plant,  including  refineries,  storage  tanks,  acid  works, 
mechanical  shop  and  pump  house  and  clay  restoring  plant, 
covers  fifty-six  acres.  The  construction  throughout  is  brick, 
steel  and  concrete. 

The  company  manufactures  gasolene  and  naphthas,  motor 
spirits,  refined  oils,  gas  oil,  black  oils,  road  oils,  fuel  oil  and 
petroleum  coke.  The  company  had  been  disposing  of  its 
products  on  contract  until  late  in  1914,  when  it  entered 
actively  into  competition  with  other  mid-continent  refineries 
for  the  local  jobbing  trade. 

Balance  Sheet — The  company’s  statement  for  the  year 
ended  December  31,  1916,  compares  with  that  of  the  previous 
year,  as  follows: 


1916  1915 

Net  Profits .  $1,270,313  $563,946 

Dividends  .  240,000  240,000 


Balance  to  Surplus 


$1,030,313 


$323,946 


Standard  Oil  Company — Kentucky 


103 


Net  profits  were  at  the  rate  of  63.69  per  cent,  against  28.19 
per  cent,  in  1915.  ' 

The  Balance  Sheet  as  of  December  31,  1916,  compares  with 
that  of  the  previous  year  and  with  that  of  December  31,  1911, 
when  the  dissolution  became  effective,  as  follows: 

Assets:  1916  1915  1911- 

Real  Estate  and  Plant  $2,120,448.84  $1,490,033.42  $602,786 

Cash .  520,585.70  536,794.66  25,835 

Securities  .  615,564.32  621,234.10  . 

Accts.  Receivable .  766,821.69  507,633.58  21,922 

Merchandise  .  1,078,157.97  689,419.32  966,971 


Total  Assets .  $5,101,578.52 

Liabilities: 

Capital  Stock .  $2,000,000.00 

Accounts  Payable .  337,319.13 

Depreciation  Reserve...  345,575.99 
Surplus  .  2,418,683.40 


$3,845,115.08 

$2,000,000.00 

376,745.38 

1,468,369.70 


$1,617,515 

$1,000,009 

585,226 

32,289 


Total  Liabilities _ $5,101,578.52  $3,845,115.08  $1,617,515 

Comparison  of  the  surplus  at  the  close  of  1911  when  the 
company  began  independent  operation,  with  the  surplus  at 
the  close  of  1916,  shows  a  growth  in  undivided  profits  of 
$2,386,394,  which  in  connection  with  cash  dividends  of  $1,- 
690,000  and  a  stock  dividend  of  $1,000,000  out  of  surplus, 
shows  total  earnings  for  the  five  year  period  of  $5,076,394, 
after  depreciation  and  all  adjustments.  This  is  equivalent 
to  average  yearly  earnings  of  $1,000,000,  or  at  the  rate  of 
50  per  cent,  on  the  present  outstanding  capital  of  $2,000,000. 
The  company  for  the  first  time  sets  up  its  depreciation  ac¬ 
count  and  after  setting  aside  $345,576  for  depreciation  reserve, 
the  company’s  capital  investment  has  increased  $630,415  dur¬ 
ing  the  past  year.  In  the  five  year  period  the  company’s  plant 
investment  has  increased  $1,518,904  after  depreciation.  Work¬ 
ing  capital  at  the  close  of  the  year  was  $2,643,810,  compared 
with  $1,978,336  at  the  close  of  1915.  With  more  than  one 
million  and  a  half  dollars  In  net  cash  assets,  the  company  is 
in  position  to  carry  on  its  new  plans  for  acquiring  its  own 
producing  pipe  line  properties.  Although  its  charter  was 
amplified  for  this  purpose  late  in  1916,  no  plans  along  this 
line  have  been  announced  by  the  company. 

Net  assets  on  December  31,  1916,  were  $4,418,683,  against 
net  assets  of  $1,032,289  on  December  31,  1911,  and  net  assets 
of  $1,095,700  on  December  31,  1906. 

Officers — President — J.  C.  McDonald. 

Vice-President — Thomas  Black. 

Secretary  and  Treasurer — E.  A.  Warren 

Directors — The  above-mentioned  officers  and  in  addition: 

A.  S.  Hopkins  and  A.  L.  Morrison. 

Transfer  Office — Neodesha,  Kansas 


STANDARD  OIL  COMPANY  (Kentucky) 

The  Standard  Oil  Company  of  Kentucky  was  incorporated 
In  1886  under  the  laws  of  Kentucky. 

Capital  Stock — $6,000,000;  par  value,  $100.  The  capital 
stock  was  originally  $600,000,  but  it  was  increased  to  $1,000,000 
in  1892.  In  December,  1913,  the  stockholders  voted  to  in¬ 
crease  the  capitalization  from  $1,000,000  to  $3,000,000,  and  on 
February  1,  1917,  the  stockholders  again  voted  to  increase  the 
capital  from  $3,000,000  to  $6,000,000. 


104 


Standard  Oil  Company — Kentucky 


In  connection  with  each  increase  in  capital  stock,  the  stock¬ 
holders  were  awarded  a  cash  dividend  with  the  privilege  of 
accepting  new  stock  in  payment. 

Dividends — A  dividend  of  5.  per  cent.,  the  first  since  the 
dissolution,  was  declared  payable  on  July  1,  1913.  A  second 
dividend  of  5  per  cent.,  payable  October  1st,  was  announced 
as  a  regular  quarterly  dividend.  A  200  per  cent,  cash  divi¬ 
dend  was  declared,  payable  February  14,  1914,  to  stockholders 
of  record  January  31st.  A  third  quarterly  dividend  of  5  per 
cent,  was  paid  January  2,  1914.  On  April  1,  1914,  an  initial 
quarterly  dividend  of  4  per  cent,  and  1  per  cent,  extra  was 
paid  on  the  new  capitalization  and  thereafter  on  July  l*t, 
4  per  cent,  and  1  per  cent,  extra;  October  1st.  4  per  cent.; 
1915,  January  2nd,  4  per  cent.;  April  1st,  4  per  cent.;  July  1, 
4  per  cent.;  October  1,  4  per  cent.;  1916,  20  per  cent.  (4  per 
cent,  and  1  per  cent,  extra  quarterly)  ;  1917,  January  2,  4  per 
cent,  and  1  per  cent,  extra;  May  1,  100  per  cent,  cash  or  stock. 

Income  Tax  Notice — Of  the  100  per  cent,  dividend  paid 
May  1,  1917,  $1,382,334  is  declared  out  of  profits  earned  prior 
to  March  1,  1913,  and  the  remainder,  $1,617,666,  is  declared 
out  of  profits  earned  since  that  date. 

Properties — This  is  a  marketing  company,  operating  in 
southern  Indiana  and  Illinois  and  south  of  the  Ohio  River  and 
©ast  of  the  Mississippi.  At  the  time  of  its  organization,  the 
company  purchased  the  various  plants  and  marketing  sta¬ 
tions  of  the  Chess-Carley  Company  throughout  the  Southern 
States.  It  also  purchased  all  the  properties  of  the  Con¬ 
solidated  Tank  Line  Company  in  1892. 

The  company  announced  late  in  1916,  the  purchase  of  a 
large  river  front  acreage  at  Louisville  and  the  approval  of 
plans  for  the  erection  of  a  refinery.  Construction  already  is 
under  way.  The  refinery  when  completed  will  cost  $1,000,000, 
employ  200  men  and  have  an  annual  output  of  500,000  barrels 
of  gasolene,  in  addition  to  other  by-products.  The  refinery 
will  operate  on  Kentucky  crude  oil. 

This  company’s  statement  for  1916  compares  with  that  of 


the  previous  year  as  follows: — 

1916  1915 

♦Net  Profits  . .  $2,068,598  $1,124,640 

Dividends  . . . .  600,000  480,000 


Surplus  . . .  $1,468,598  $644,640 


♦Equal  to  68.95  per  cent,  earned  on  $3,000,000  capital 
stock  compared  with  37.4  per  cent,  earned  on  the  same 
amount  of  stock  in  1915. 

Assets :  1916  1915 

Plant,  Improvements  and  Equipment  $3,524,003  $3,063,400 

Merchandise  .  2,402,274  1,806,728 

Cash,  Accts.  Rec.  and  other  Inv .  3,553,854  2,362,054 


Total  Assets .  $9,480,131  $7,232,190 

.  Liabilities: 

Capital  Stock  .  $3,000,000  $3,000,000 

Accounts  Payable...: .  1,116,767  504,372 

Res.  Depreciation .  1,148,719  995,146 

Insurance  Fund . .  165,320  151,946 

Surplus  . : .  4,049,325  2,580,727 


Total  Liabilities.. .  $9,480,131  $7,232,190 


I 


Standard  Oil  Company — Nebraska  106 


Earnings  of  nearly  69  per  cent,  on  $3,000,000  capital  con¬ 
stitute  a  high  record  for  the  company  and  compare  with 
37.4  per  cent,  in  1915;  23.4  per  cent,  in  1914  and  33.4  per 
cent,  in  1913.  The  prosperity  which  the  company  enjoyed 
during  1916  is  reflected  in  its  net  cash  assets  which  aggre¬ 
gate  nearly  $2,500,000  and  a  growth  in  surplus  from  $2,580,- 
727  to  $4,049,325  after  distributing  $600,000  in  dividends. 

The  company  now  has  under  construction  a  $1,000,000  re¬ 
finery  which  will  enhance  still  further  its  earning  power. 

The  company’s  growth  since  the  dissolution  is  shown  com¬ 
paratively  as  follows: 


Cash  Net  Current  Capital  & 
Earnings  Dividends  Assets  Surplus 

1916 .  $2,068,598  $600,000  $4,839,361  $7,049,325 

1915 .  1,124,640  480,000  3,664,410  5,580,727 

1914 .  704,376  470,000  3,272,027  4,936,086 

1913 .  1,002,457  100,000  2,762,922  4,701,710 

1912 . Not  reported  None  2,008,749  3,799,253 


Officers — President — C.  T.  Collings.  £ 

Vice-President — C.  H.  Stansnury. 

Secretary  and  Treasurer — Joseph  C.  Steidle. 
Assistant  Secretary — S.  W.  Coons. 

Directors — C.  T.  Collings,  C.  H.  Stansbury,  W.  W.  Robert¬ 
son,  S.  W.  Coons,  J.  C.  Steidle,  James  B.  Brown, 
and  Charles  O.  Middleton. 

Transfer  Office — 426  West  Bloom  Avenue,  Louisville,  Ky. 


STANDARD  OIL  COMPANY  (Nebraska) 

The  Standard  Oil  Company  of  Nebraska  was  incorporated 
in  1906  under  the  laws  of  Nebraska. 

Capital  Stock-^The  capital  stock  is  $1,000,000,  having  been 
increased  from  $800,000  in  1913,  to  which  amount  it  was 
increased  from  $600,000  in  1912. 

Dividends — Dividends  have  been  declared  as  follows:  1912, 
April  15th,  33  1-3  per  cent,  stock  dividend;  June  20th,  10  per 
cent.;  December  20th,  10  per  cent.;  1913,  June  20th,  25  per 
cent,  stock  dividend:  cash  10  per  cent,  and  5  per  cent,  extra; 
December  20th,  10  per  cent,  and  5  per  cent,  extra;  1914,  20 
per  cent.  (10  per  cent,  semi-annually);  1915,  20  per  cent. 
(10  per  cent,  semi-annually)  ;  1916,  20  per  cent.  (10  per  cent, 
semi-annually) . 

Properties — This  is  exclusively  a  marketing  company,  own¬ 
ing  and  operating  103  distributing  stations  in  Nebraska.  It 
handles  the  products  of  Standard  Oil  Company,  Indiana, 
Standard  Oil  Company.  Kansas,  and  the  Midwest  Refining 
Company,  of  Casper,  Wyoming. 

No  statement  of  earnings  has  been  issued,  but  the  Federal 
Trade  Commission  reports  that  in  1915,  the  company  earned 
$561,914,  or  at  the  rate  of  56.19  per  cent.  On  December  31, 
1915,  the  company  had  a  capital  and  surplus  of  $1,858,707. 
As  1916  earnings  were  at  a  higher  rate,  the  company  probably 
has  a  book  value  around  $2,500,000. 

Officers — President — C.  L.  Alleman. 

Vice-President — A.  H.  Richardson. 

Secretary — H.  L.  Alleman. 

Assistant  Secretary — Jas.  A.  Gilmore. 

Treasurer — G.  M.  Smith.  ** 

Transfer  Office — Brandeis  Building,  Omaha,  Nebraska. 


106 


Standard  Oil  Company — New  York 


STANDARD  OIL  COMPANY  (New  York) 

Incorporated  in  1882  under  the  laws  of  New  York. 

Capital  Stock — $75,000,000;  par  value,  $100.  The  capital 
stock  was  originally  $5,000,000,  having  been  increased  to 
$7,000,000  in  1892.  and  to  $15,000,000  in  1903.  On  June  5,  1913, 
the  stockholders  ratified  the  proposal  to  increase  the  capital 
to  75,000,000  by  a  400  per  cent,  stock  dividend,  which  was 
distributed  on  June  30tlp 

Dividends — Prior  to  dissolution  dividends  »Mr,  r*'|im-ied  70 
per  cent,  in  1903  and  10  per  cent,  in  1906.  Since  dissolution 
dividends  have  been  declared  payable  as  follows:  1911,  De¬ 
cember  15,  20  per  cent.;  1912,  June  15,  6  per  cent.;  1913, 
June  16,  6  per  cent.;  1914,  March  16,  2  per  cent;  (initial 
quarterly  dividend  on  increased  capitalization)  ;  and  2  per 
cent,  quarterly  thereafter  on  the  15th  day  of  March,  June, 
September  and  December.  Until  June  15,  1917,  when  the 
quarterly  rate  was  raised  to  $3.00. 

Properties — The  company  has  extensive  and  modern  refin¬ 
eries  located  as  follows:  -. 

New  York  Harbor;  Pratt  Works,  Brooklyn;  Devoe  Works, 
Long  Island  City;  Sone  and  Fleming  Works,  Long  Island 
City.  Combined  capacity,  20,000  barrels  daily. 

Buffalo,  N.  Y.,  Atlas  Refinery;  daily  capacity,  2,000  barrels. 

The  Pratt  Works  is  the  largest  wax  plant  in  this  country 
and  since  the  outbreak  of  the  war,  additions  have  been 
made  because  of  the  greatly  increased  export  demand  for 
paraffine  products. 

The  company  also  operates  at  Oswego,  N.  Y.,  a  large 
factory  Dir  making  “shooks”  for  the  can  and  casing  depart¬ 
ment  of  its  own  and  other  companies.  In  connection  with  the 
Devoe  Works,  a  large  canning  and  casing  factory  is  operated. 
In  North  Tenth  Street,  Long  Island  City,  the  company  has 
an  extensive  cooperage  and  shipping  department  and  a  large 
paint  manufactory.  An  extensive  ship  building  and  repair 
yard  is  maintained  in  Long  Island  City,  under  the  name  of 
the  “Empire  Yard.” 

The  company  has  erected  at  Tientsin,  China,  a  candle  fac¬ 
tory  which  is  equipped  with  32  candle  making  machines,  and 
has  a  daily  capacity  of  400,000  candles. 

The  company  completed  before  the  war  a  large  storage 
station  and  distribution  plant  at  the  Pireaus,  the  port  of 
Athens,  Greece.  A  can  factory  will  be  part  of  the  installation. 

The  company  owns  the  building  at  No.  26  Broadway  and 
a  $1,500,000  plot  at  No.  50  Broadway,  running  through  to 
New  street,  on  which  an  Arcade  building  was  erected 
during  1915.  The  company  also  owns  other  property  in  New 
York  City  and  state,  and  has  extensive  holdings  throughout 
New  England,  and  also  in  China. 

The  main  distributing  stations  for  its  marketing  organiza¬ 
tions  are  at  Boston  and  East  Boston,  Mass. ;  Portland  and 
Rockland,  Maine;  Providence  and  East  Providence,  R.  I.; 
Bridgeport,  Hartford  and  Wilson’s  Point,  Conn.;  Albany  and 
Buffalo,  N.  Y.  At  all  these  points  the  company  owns  real 
estate. 

An  adjunct  to  the  company’s  extensive  marketing  organ¬ 
ization  is  its  fleet  of  oil-carrying  ships  and  barges.  In  its 
financial  statement  for  1912,  marine  equipment  was  carried 
at  $4,000,000,  but  during  1913,  $3,000,000  additional  was 

expended  for  the  construction  of  five  new  steamships  and 
two  barges.  The  marine  transportation  business  of  the  com- 


Standard  Oil  Company — New  York 


107 


pany  has  become  so  large  that  it  was  decided  to  conduct  it 
under  a  subsidiary  corporation,  the  Standard  Transportation 
Company,  which  is  described  hereinafter.  ' 

The  dissolution  found  the  company  entrenched  solidly  a  a 
the  paramount  selling  organization  in  the  wealthiest  and  moat 
thickly  settled  portion  of  the  country — its  territory  embracing 
New  York  State  and  the  New  England  f^ates.  Every  portion 
of  this  territory  is  easily  accessible  by  economic  water  routes, 
Is  the  most  intensively  developed  manufacturing  section  of 
the  country  and  represents  the  highest  per  capita  consump¬ 
tion  of  gasolene  for  automobile  and  motor  boat  purposes. 
These  conditions  are  reflected  in  the  company's  large  market¬ 
ing  profits. 

Residents  of  New  York  and  the  New  England  States  are 
familiar  with  the  company’s  aggressive  sales  campaign  on 
“Socony”  products.  The  wisdom  of  this  is  apparent,  from 
the  fact  that  there  are  500,000  motor  driven  vehicles  in  this 
territory,  with  an  average  consuming  capacity  of  (.000,000 
gallons  of  gasolene  a  day. 

In  the  recent  report  of  the  Federal  Trade  Commission,  it 
was  stated  that  while  Standard  refineries  generally  sold  65  per 
cent,  of  the  gasolene  consumed,  Standard  Oil  Company  of 
New  York  had  70  per  cent,  of  the  gasolene  sales  in  its  terri¬ 
tory. 

Since  the  dissolution,  the  company  has  made  some  experi¬ 
ments  in  production,  mainly  in  regions  adjacent  to  its  great 
foreign  markets.  For  two  years  its  drilling  crews  have  been 
exploring  in  north  China  and  it  has  valuable  concessions  in 
Turkey  and  Palestine,  where  development  has  been  inter¬ 
rupted  by  the  war. 

The  interruption  of  the  company's  development  project  ir» 
China,  will  not  interfere  in  anyway  with  the  company's  large 
marketing  interests  thr.oughout  the  Chinese  Empire,  where 
it  is  the  dominant  marketing  concern.  China’s  consumption 
of  petroleum  products,  mostly  kerosene,  was  $1  6,686,146  in 
1914,  of  which  Standard  Oil  Company  of  New  York  furnished 
60  per  cent. 

Twelve  years  ago  the  company  began  an  aggressive  cam¬ 
paign  to  introduce  its  products  in  the  Chinese  Empire.  Rapid 
progress  was  made  through  the  introduction  of  a  simple 
kerosene  lamp,  given  away  at  first  and  later  sold  at  cost.  By 
the  use  of  this  Mei  Foo  (Good  Luck)  lamp,  the  Chinese  silk 
workers  were  able  to  extend  their  working  day,  which  form¬ 
erly  had  been  constricted  to  the  daylight  hours.  Two  million 
of  these  lamps  are  now  sold  annually  in  China,  while  the 
consumption  of  kerosene  has  risen  from  13,500,000  gallons  in 
1903  to  120,000,000  gallons  annually.  Even  with  this  consump¬ 
tion,  only  the  surface  of  the  country’s  consuming  capacity 
has  been  scratched  as  there  are  400,000,000  persons  to  edu¬ 
cate  up  to  the  use  of  illuminating  oil. 

The  company  has  been  for  some  years  the  dominant  oil 
marketing  agency  throughout  the  Orient. 

The  Standard  Oil  Company  of  New  York’s  financial  state¬ 
ment  as  of  December  31,  1916,  compares  as  follows: 

Earnings  Statement 

1916  1915  Difference 

Net  Earn,  from  Operations. .  $36, 638, 495  $15,761,663  $20,876,832 


Dividends  .  6,000,000  6,000,000  . 

Balance  to  Surplus .  30,638,496  9,761,663  20,876,832 


Standard  Oil  Company — New  York 


10  8 


Comparative  Balance  Sheets 


Assets : 

Real  Estate,  Plants,  etc.., 

Deferred  Assets  . 

Inventory  of  Merchandise 
Cash  and  Current  Assets.. 

1916 

.  $61,875,470 
297,485 
64,861,907 
41,677,904 

1915 

$45,811,270 

43,221 

41,513,293 

29,916,550 

Total  Assets . . 

$168,662,766 

$117,284,333 

Liabilities : 

Capital  Stock  . 

Surplus  . V . .  .  .  . 

Res.  for  Insurance,  etc. .  .  . 
Current  Liabilities . 

68,635,573 

2,437,051 

22,590,142 

$75,000,000 

26,463,254 

2,575,079 

13,246,000 

Total  Liabilities.  .  .  . 

$168,662,766 

$117,284,333 

Analysis  of  Surplus 

Surplus  December  31,  1915 . 

Transfer  from  Reserves . 

Appreciation  in  Equipment  of  Subsidiary  Cos . 

Total  Earnings  Year  1916,  after  deducting  operat¬ 
ing  expense,  depreciation  and  sundry  reserves.. 


Difference 

$16,014,200 

254,264 

23,348,614 

11,761,354 


$51,378,432 


$42,172,319 

138,028 

9,344,142 


$51,378,433 


$26,463,254 

566,066 

10,967,757 

36,638,495 


<  $74,635,572 

Less  Dividends .  6,000,000 

Surplus  December  31,  1916 .  $68,635,572 


Earnings  were  at  the  rate  of  48.85  per  cent,  against  21  per 
cent,  in  1915  and  10.3  per  cent,  in  1914.  If  the  appreciation 
in  v^lue  of  the  equipment  of  its  subsidiary  company,  the 
Standard  Transportation  Company,  is  taken  into  consideration, 
the  total  earnings  for  the  year  were  $64.23  a  share. 

Through  the  great  enhancement  in  value  of  the  company^ 
fleet  and  marine  equipment  and  the  money  expended  on  new 
vessels,  plant  account  was  increased  $16,014,200,  while  net 
cash  assets  were  larger  by  $2,417,212.  The  company’s  working 
capital  was  increased  from  $58,227,064  at  the  close  of  1915  to 
$84,247,154,  a  net  gain  of  $26,020,090.  The  book  value  of  the 
stock  was  increased  to  $191  a  share. 

The  growth  of  the  company  since  the  dissolution  is  shown 
comparatively  as  follows: 


Capital  Current  Capital  and 
Earnings  Assets  Assets  (Net)  Surplus 

1916 .  $36,638,495  *$61,825,470  $84,247,154  $143,635,573 

1915 .  15,761,663  45,811,270  58,227,064  101,463,254 

1914 .  7,735,919  37,126,607  53,972,724  90,471,958 

1913 .  16,212,985  40,314,370  50,304,971  89,965,672 

1912 .  15,185,211  29,470,698  43,958,315  74,386,338 


♦Company  has  not  stated  its  depreciation  on  plant  and 
equipment  since  December  31,  1913.  On  that  date 

accrued  depreciation  was  $13,031,005. 


On  December  31,  1916,  the  company’s  net  assets  were  $143,- 
635,573,  which  compares  with  net  assets  of  $53,740,359  on 
December  31,  1911,  and  net  assets  of  $26,062,610  on  Decem¬ 
ber  31,  1906,  showing  a  growth  of  $89,895,214  or  167  per  cent, 
in  the  last  five  years,  against  a  growth  of  $27,677,749  or 
105  per  cent,  in  the  prior  five  years. 


109 


Standard  Transportation  Company 

- - - - 

Officers  and  Directors: 

President — Hv  C.  Folder, 
Vice-President — H.  L.  Pratt. 
Vice-President — W.  It.  King-. 
Secretary — R.  C.  Veit. 

Treasurer — H.  H.  Stein. 


C.  M.  Higgins,  Martin  Carey,'  Howard  E.  Cole, 
Charles  F.  Meyer. 

The  above  are  Directors  with  the  exception  of  H.  H.  Stein. 
Transfer  Office — No.  26  Broadway. 


STANDARD  TRANSPORTATION  CO. 

Standard  Oil  Company,  New  York,  announced  in  July, 
1915,  the  incorporation  in  Delaware  of  the  Standard  Trans¬ 
portation  Company;  capital  $15,000,000,  par  $100,  to  taka 
over  the  marine  transportation  business  of  the  company.  In 
addition  to  the  company’s  fleet  of  nine  tankships  of  25,469 
gross  tonnage  and  eleven  coasting  tank  barges  of  26,443  gross 
tonnage,  there  will  be  ready  for  service  within  the  next  year 
eight  tankships,  of  an  estimated  total  of  63,000  tons,  four  of 
which  are  of  a  special  type  of  10,250  tons  each,  built  for  the 
Far  East  service.  The  “Standard  Arrow,”  the  first  of  this 
class,  was  launched  May  15,  1916.  The  “Royal  Arrow”  was 
launched  in  September  and  two  others  will  be  launched  dur¬ 
ing  1917. 

The  charter  of  the  Standard  Transportation  Company  is  a 
very  broad  one,  permitting  the  new  company  to  build,  pur¬ 
chase,  own,  equip,  navigate  and  operate  ships,  boats,  barges 
and  tenders;  to  carry  on  the  business  of  ship  owners,  ship 
brokers  and  managers  of  shipping  property;  to  obtain  from' 
the  Government  of  the  United  States  or  any  other  govern¬ 
ment  the  registry,  license  or  enrollment  of  ships,  vessels  and 
boats  and  to  erect,  equip  and  operate  all  kinds  of  works  and 
buildings,  control  or  superintend  wharves  and  warehouses 
where  ships,  stores,  petroleum  or  other  works  are  located. 

An  officer  of  the  company  authorizes  the  statement  that 
the  stock  of  the  Standard  Transportation  Company,  excepting 
as  to  qualifying  shares,  wall  be  held  by  the  parent  company 
and  not  distributed  as  a  stock  dividend. 

Convenience  in  transacting  business  under  a  distinct  cor¬ 
poration  and  the  growing  magnitude  and  importance  of  the 
marine  transportation  activities  of  the  Standard  Oil  Com¬ 
pany,  New  York,  are  the  reasons  stated  for  the  formation  of 
the  new  corporation. 


Uloyd’s  Register  for  1916-1917  gives  the  following  vessels 
entered  under  Standard  Transportation  Company  ownership: 


Vessel  Gross  Tonnage 


Acme . 

7,445 

Astral  . . 

8,100 

Brilliant  . 

2,487 

Comet  . 

2,487 

Eocene  . 

2,217 

Perfection  . 

2,309 

Radiant  . 

2,487 

12  Miscellaneous  Vessels 

know 

tation  Company  Nos. 

57  to 

Other  Miscellaneous  Vessels 


Vessel  Gross  Tonnage 


R*yo  .  3,664 

Royal  Arrow .  10,250 

Socony  .  3,664 

Standard  Arrow .  10,250 

Vesta  .  .  .  .  3,663 


59,023 

as  Standard  Transpor- 

4 .  27,594 

.  2,385 


Total  Tons  in  Operation 


89,002 


110 


Standard  Oil  Company — Ohio 


i 


Scheduled  for  1917  Completions 

Eagle .  6,200  Sylvan  Arrow . .  ...  10,250 

Tigef  .  6,200  Broad  Arrow .  10,250 

Total  T^ns  Under  Construction .  32,900 

In  addition  to  the  above  the  company  operates  a  large 
number  of  tugs  and  barges  in  New  York  Harbor  and  on 
inland  New  England  waterways. 

The  officers  of  the  new  corporation  are  Otto  Hallenback, 
president;  Alfred  Renshaw,  vice-president;  L».  Ruprecht, 
treasurer;  H.  H.  Stern,  secretary.  The  officers  are  also  direc¬ 
tors  and  in  addition,  Nicholas  Pluywert,  Jr.  The  company 
maintains  offices  at  26  Broadway. 


STANDARD  OIL  COMPANY  (Ohio) 

The  Standard  Oil  Company  of  Ohio  was  incorporated  in 
11870  under  the  laws  of  Ohio.  In  1882,  the  entire  capital  stock 
was  owned  by  parties  to  the  trust  agreement.  The  company 
purchased  the  properties  of  the  American  Lubricating  Oil 
Company  in  1888. 

Capital  Stock — $7,000,000;  par  value,  $100.  The  capital 
stock  was  $3,500,000.  On  May  25,  1916,  the  stockholders 
authorized  an  increase  by  a  100  per  cent,  stock  dividend. 

Dividends — Since  the  dissolution,  dividends  have  been  paid 
as  follows:  1912,  December  15th,  5  per  cent.;  1913,  March 
31st,  3  per  cent,  and  2  per  cent,  extra;  June  19th,  3  per  cent, 
and  2  per  cent,  extra;  September  30th,  3  per  cent,  and  2  per 
cent,  extra;  December  22d,  3  per  cent,  and  2  per  cent, 

extra;  1914,  24  per  cent.  (3  per  cent,  and  3  per  cent,  extra 
quarterly);  1915,  24  per  cent.  (3  per  cent,  and  3  per  cent,  extra 
quarterly);  1916,  January  1,  3  per  cent,  and  3  per  cent,  extra; 
April  1,  3  per  cent,  and  3  per  cent,  extra;  July  1,  3  per 
cent,  and  3  per  cent,  extra;  July  31,  100  per  cent,  stock  divi¬ 
dend;  October  2,  3  per  cent,  and  %  per  cent,  extra;  1917, 
Jan.  2,  3  per  cent,  and  1  per  cent,  extra;  April  2,  3  per  cent, 
and  1  per  cent,  extra. 

Properties — The  company  owns  the  Cleveland  Refilling 
Works  at  Cleveland,  Ohio.  This  refinery,  on  which  $1,000,000 
were  expended  for  improvements  in  1911,  has  been  doubled 
in  capacity  since  that  time.  The  company  put  more  than 
$2,000,000  into  plant  extension  during  1915  and  is  spending 
another  million  dollars  in  the  current  year  installing  Burton 
stills  in  order  to  increase  its  gasolene  output. 

The  company  controls  60  per  cent,  of  the  gasolene  business 
in  the  State  of  Ohio,  and  the  demand  for  this  product  has 
increased  so  far  beyond  tlife  company’s  manufacturing  capac¬ 
ity  that  it  purchased  in  1915,  according  to  the  Federal  Trade 
Commission’s  report,  38,000,000  gallons  from  Standard  of 
Indiana,  and  1,800,000  gallons  from  Cosden  &  Company  and 
other  Mid-Continent  refineries. 

The  company’s  refinery  capacity  for  other  by-products  is 
4,500  barrels  a  day,  and  its  paraffine  works  are  among  the 
best  in  the  country.  The  company  also  conducts  a  marketing 
business  throughout  Ohio  and  since  the  dissolution  has  in¬ 
creased  its  marketing  stations  from  100  to  350. 

The  company’s  financial  statement  for  1916  compares  as 
follows: 


Standard  Oil  Company — Ohio 


111 


Assets:  1916  1915  Changes 

Plant  .  $8,350,329  $6,163,880  Inc.  $2,186,449 

Merchandise  .  2,833,932  2,385,764  Inc.  448,168 

Cash  .  373,832  682,104  Dec.  308,272 

Accounts  Receivable  and 

Other  Investments. .  .  3,234,112  2,619,958  Inc.  614,154 

Reserve  for  Plant  Ex¬ 
tensions  .  1,144,626  1,100,000  Inc.  44,626 


Total  Assets . $15,936,932  812,951,706  Inc.  $2,985,126 

Liabilities : 

Capital  Stock  .  $7,000,000  $3,500,000  Inc.  $3,500,000 

Accounts  Payable .  902,048  935,932  Dec.  33,884 

Depreciation  Account...  1,995,394  1,765,820  Inc.  229,574 

Surplus  .  6,039,390  6,749,954  Dec.  710,564 


Total  Liabilities.  .$15,936,832  $12,951,706  Inc.  $2,985,126 

Standard  Oil  Company  of  Ohio  earned  at  the  rate  of  53.  G 
per  cent,  during  191G,  on  $7,000,000  capital,  against  61  per 
cent,  on  $3,500,000  in  1915.  At  the  close  of  1915,  the  com¬ 
pany’s  surplus  was  $6,749,954,  against  which  the  company  dis¬ 
tributed  a  stock  dividend  of  $3,500,000,  leaving  a  balance  of 
$3,249,954  in  surplus  account  before  taking  up  current  earn¬ 
ings.  At  the  close  of  1916,  surplus  had  again  increased  to 
$6,039,390,  showing  a  gain  of  $2,789,436  after  depreciation 
and  other  adjustments.  This  sum,  with  $962,500  distributed 
in  dividends,  gives  net  profits  of  $3,751,936  for  the  year.  The 
balance  sheet  for  1916  compares  as  follows: 

Plant  account  increased  $2,186,449  after  writing  off  $229,- 
574  for  depreciation  and  cash  reserved  for  plant  extensions 
increased  from  $1,100,000  at  the  close  of  1915  to  $1,144,626 
at  the  end  of  1916.  It  would  appear  therefore  that  if  the 
company  maintains  its  policy  of  setting  aside  a  portion  of 
earnings  for  plant  extensions,  it  will  be  able  in  the  near 
future  to  distribute  another  50  per  cent,  stock  dividend 
against  capital  investment.  The  company’s  working  capital 
increased  during  the  year  from  $4,751,884  to  $5,539,828.  Net 
assets  at  the  close  of  1916  were  $13,039,390,  compared  with 
$10,249,954  at  the  close  of  the  previous  year. 

The  company  furnished  no  balance  sheet  prior  to  1915, 
but  from  the  Federal  Trade  Commission’s  report  and  the  an¬ 
nouncement  of  its  1912  surplus  for  income  tax  purposes,  it  is 
possible  to  'deduce  the  following: 

1916  1915  1914  1912 

Capital  &  Surplus  $13,039,390  $10,249,954  $8,953,697  $7,540,345 

On  December  31,  1906,  net  assets  were  $486,348,  which 
would  indicate  a  gain  of  $8,223,042  in  the  10-year  period. 
It  is  notable,  however,  that  the  growth  in  net  assets  between 
1912  and  1916  was  73  per  cent.,  against  a  growth  of  56  per 
cent,  in  the  prior  six  years. 

Officers — President — A.  F.  Coombe. 

Vice-President — W.  H.  Foster. 

Treasurer — M.  G.  Vilas. 

Secretary — J.  M.  Robertson. 

Directors — The  above  and  S.  T.  Curtis. 

Transfer  Office — 3225  East  55th  Street,  Cleveland,  Ohio. 


I 


112  Swan  and  Finch  Company 


SWAN  AND  FINCH  COMPANY 

The  Swan  and  Finch  Company  was  incorporated  in  1891 
under  the  laws  of  New  York. 

Capital  Stock — The  capital  stock  is  51,000,000.  Par  value 
5100.  The  original  capital  of  $100,000  was  increased  to  $500,- 
000  by  a  vote  of  the  stockholders  on  May  7,  1912,  and  sub¬ 
scription  rights  were  extended  the  shareholders.  On  May  1, 
1916,  the  stockholders  voted  to  increase  the  capital  to  $1,000,- 
000  and  shareholders  again  enjoyed  the  right  to  subscribe  to 
the  new  stock  at  par,  pro  rata  to  their  holdings. 

In  announcing  the  proposed  capital  increase,  the  directors 
Issued  the  following  statement  to  the  shareholders: 

“Since  your  company  passed  under  the  management  of 
your  present  board  and  officers  about  a  year  ago,  every  de¬ 
partment  has  been  reorganized,  with  the  result  that  the 
business  of  the  company  for  1915  showed  a  substantial  profit 
in  the  face  of  very  unsatisfactory  business  conditions  during 
the  first  half  of  the  year,  and  notwithstanding  the  fact  that 
the  department  of  fish  oil  production  showed  a  large  loss  due 
to  the  unheard  of  scarcity  of  menhaden  fish  in  northern 
waters.  The  increasing  business  of  the  company  has,  how¬ 
ever,  made  it  necessary  for  your  company  to  borrow  large 
sums  of  money  from  financial  institutions,  as  the  statement, 
dated  December  31,  1915,  will  indicate.  This  is  a  practice 
which  we  do  not  believe  should  be  continued,  and  is  not  in 
line  with  the  general  policy  of  this  company  in  the  past. 

"In  order  to  avoid  the  necessity  in  future  of  borrowing 
money  with  which  to  carry  on  the  company’s  business  and  in 
order  to  provide  the  necessary  working  capital  for  the  com¬ 
pany’s  present  needs  and  for  the  increase  of  business  which 
the  officers  are  justified  in  expecting,  the  board  of  directors 
unanimously  recommend  an  increase  of  the  capital  stock  of 
the  company  from  5,000  shares  of  the  par  value  of  $500,000 
to  10,000  shares  of  the  par  value  of  $1,000,000.  The  right  to 
subscribe  to  the  new  stock  at  par  will  be  given  to  stock- 
hold'ers  pro  rata  to  their  holdings,  whether  in  whole  shares 
or  fractional  shares.’’ 

Dividends — Since  the  dissolution,  an  initial  dividend  of  S 
per  cent,  was  paid  March  31,  1913. 

Properties — The  business  of  the  company  consists  of  com¬ 
pounding  and  marketing  lubricating  oils,  greases,  etc.,  largely 
for  marine  engine  consumption.  It  also  controls  a  large  per¬ 
centage  of  the  fish  oil  business  of  the  country,  and  deals  in 
vegetable  oils,  as  well  as  conducts  a  large  export  business  in 
refined  petroleum  products  of  various  kinds. 


Balance  .Sheet — The  financial  statement  of  the  company  as 
of  December  31,  1916,  compares  as  follows: 


Assets: 

1916 

1915 

Changes 

Plant  and  Equipment.... 

$502,501 

$440,880 

Inc. 

$61,621 

Material  and  Mdse . 

1,148,461 

814,374 

Inc. 

334,087 

Accounts  Receivable . 

409,422 

335,046 

Inc. 

74,376 

Cash  . 

135,096 

35,422 

Inc. 

99,674 

Total  Assets . 

Liabilities: 

$2,195,480 

$1,625,722 

Inc. 

$569,758 

Capital  Stock . 

$970,000 

$500,000 

Inc. 

$470,000 

Accounts  Payable . 

487,135 

192.301 

Inc. 

294,834 

Rills  Payable . 

325,000 

Dec. 

325,000 

Depreciation  Reserve . 

208,231 

141,369 

Inc. 

66,862 

Profit  and  Ross  Surplus.  . 

530,114 

467,052 

Inc. 

63,062 

Total  Liabilities . . .  . 

$2,195,480 

$1,625,722 

Inc. 

$569,758 

Union  Tank  Line  Company 


113 


Net  profits  indicated  are  $03,062  or  at  the  rate  of  6.3  per 
cent,  on  $970,000,  against  $27,555  or  5.5  per  cent,  on  $500,000 
in  1915.  Through  the  sale  of  $470,000  stock  at  par  to  share¬ 
holders  during  the  year,  the  company  was  able  to  wipe  out 
the  deficit  in  its  cash  account  and  show  an  increase  of 
$538,303  in  net  quick  assets.  For  the  first  time  since  the 
dissolution  the  company  is  now  in  a  comfortable  cash  posi¬ 
tion  and  it  doubtless  will  show  a  resultant  increase  in  earn¬ 
ing  power.  The  company’s  net  assets  were  $643,186  on  Decem¬ 
ber  31,  1911,  against  $1,500,114  on  December  31,  1916,  showing 
a  growth  of  $856,928  or  133  per  cent,  in  the  five-year  period. 

The  large  increase  in  the  company’s  plant  account  In 
1914  was  due  to  the  completion  of  a  new  compounding  plant 
and  storehouse  at  Elizabethport,  N.  J.,  and  the  acquisition  of 
the  plant  and  fleet  of  a  Menhaden  fishing  company,  which 
had  been  supplying  it  fish  oil. 

The  company  has  announced  recently,  the  erection  of  a 
storage  and  marketing  station  at  Providence  R.  I.,  to  supply 
Its  New  England  business. 

The  company  on  February  4,  1916,  abandoned  its  offices 
and  warehouse  occupied  for  many  years  at  Maiden  Lane  and 
Front  Street,  New  York  City,  now  maintaining  offices  at  165 
Broadway  and  a  warehouse  at  157  Maiden  Lane. 

Officers — President — Henry  Fletcher. 

Vice-President  and  Treasurer— John  T.  Lee. 

Secretary — G.  E.  Brown. 

Transfer  Office — No.  165  Broadway,  New  York  City. 

Annual  Meeting — April  15th. 


UNION  TANK  LINE  COMPANY 

The  Union  Tank  Line  Company  was  incorporated  In  1891 
under  the  laws  of  New  Jersey.  At  the  time  of  the  organiz¬ 
ation,  the  eompany  purchased  from  Standard  Oil  of  Ohio  all 

of  its  tank  cars. 

Capital  Stock — The  capital  stock  is  $12,000,000.  Par  value, 
$100. 

Dividends — 1914,  March  25th,  2 y2  per  cent,  (initial)  ;  Sep¬ 
tember  25th,  2%  per  cent.;  1915,  March  25th,  2%  per  cent.; 
September  25th,  2%  per  cent.;  1916,  March  25th,  2%  percent.; 

September  25th,  2%  per  cent.;  1917,  March  25th,  2%  per  cent. 

Properties  and  Business — The  company  owns  16,000  tank 
cars  which  it  leases  to  users  and  handlers  of  crude  and  re¬ 
fined  oils.  At  the  time  of  the  dissolution  the  company  had 
12,000  cars,  4,000  of  which  were  of  obsolete  pattern.  These 
the  company  has  disposed  of  for  what  the  material  would 
bring,  as  fast  as  new  cars  could  be  manufactured  and  delivered 
to  it. 

The  company’s  orders  for  equipment  in  the  last  five  years 
can  be  illustrated  as  follows: 

1912  .  1,000  cars  1915........  1,000  cars 

1913  .  1,000  cars  1916 .  4,250  cars 

1914  .  2,100  cars  1917 .  2,000  cars 

Of  the  cars  ordered  during  1916,  only  2,000  have  been  de¬ 
livered,  leaving  the  company  4,000  cars  to  be  delivered  over 
1917  and  1918. 

The  present  equipment  of  the  company  conforms  to  the 
rigid  specifications  of  the  Interstate  Commerce  Commission 
and  the  Master  Car  Builders’  Association.  The  cars  are  of 
three  types,  namely,  G,500,  8,000  and  10,000  gallons  capacity. 


114 


Union  Tank  Line  Company 


Charges  for  the  rental  of  the  company’s  cars  are  based  on 
capacities,  as  follows: 


Capacity  Initial  Charge  Daily  Rental 

6,500  Gallons . .  ..  $1.95  $0.65 

8,000  Gallons .  2.40  .80 

10,000  Gallons .  3.00  1.00 


The  shipper  pays  the  company  the  initial  charge  and  there¬ 
after  the  daily  rental  while  the  car  is  under  load.  In  addi¬ 
tion,  the  company  receives  from  the  railroads,  three-quarters 
of  a  cent  a  mile,  loaded  and  empty,  for  the  use  of  its  cars. 
The  railroads  in  turn  receive  from  the  shipper  the  regular 

tariff  charges  for  the  transportation  of  oil. 

# 

The  company’s  position  in  the  oil  industry  is  shown  by  the 
following  table: 


Tank  Car  Ownership 


Increase 


1913 

Owned  by  Railroads.. .  6,241 

Union  Tank  Line .  13,050 

Other  Oil  Companies .  5,410 


1916  Per  Cent. 
9,416  50 

14,921  14 

15,823  192 


Union  Tank  Line  Company’s  financial  statement  for  1916 
compares  as  follows: 


Net  Earnings 
Dividends  .  . 


1916  1915 

$2,081,766  $1,067,958 

600,000  600,000 


Comparative  Balance 

Assets : 

Tank  Car  Equipment . 

Less  Depreciation . 

Balance  . 

Real  Estate . 

Shop  Investment  in  Tools . 

Material  . 

Materials,  Tools,  etc . 

Office  Furniture . 

Cash  . 

Cash  and  Investments . 

Accounts  Receivable . . 

Total  Assets . .’ . 

Liabilities : 

Capital  Stock . 

Accounts  Payable . .’ . . 

Surplus  . 

Total  Liabilities . 


$1,481,766 

$467,958 

Sheets 

1916 

1915  v 

$18,365,132 

$15,651,559 

4,878,307 

4,299,633 

$13,486,825 

$11,351,926 

12,095 

12,645 

134,439 

469,069 

397,246 

16,424 

13,804 

42,099 

533,354 

598,791 

658,727 

$14,759,741 

$12,967,702 

$12,000,000 

$12,000,000 

405,479 

95,206 

2,354,262 

872,496 

$12,759,741  $12,967,702 


Net  profits  were  at  the  rate  of  17.34  per  cent,  compared 
with  8.89  per  cent,  in  1915,  showing  a  gain  of  practically 
100  per  cent.  This  growth  in  earnings  power  reflects  the 
company’s  heavy  investment  in  additions  and  replacements 
to  its  tank  car  equipment  and  also  a  modest  advance  in  rates 
which  it  made  to  offset  the  high  cost  of  materials. 

During  the  year  $3,313,573  was  invested  in  new  tank  cars 
and  equipment,  and  $578,674  was  charged  off  for  depreci¬ 
ation.  By  the  addition  of  $1,481,766  to  surplus,  the  book 


Vacuum  Oil  Company 


115 


value  of  the  stock  has  increased  to  $119.61,  which  compares 
with  a  book  value  of  $92.62  at  the  close  of  the  company’s 
first  year  of  independent  operation. 

Earnings  of  $2,081,766,  reported  by  Union  Tank  Line  Com¬ 
pany,  represent  high  water  mark  in  the  company’s  history. 
Since  the  dissolution,  the  company’s  record  of  earnings  has 
been  as  follows: 


Year  Earnings  Rate  Book  Value 

1916 .  $2,081,766  17.34%  $119.61 

1915 .  1,067,958  8.89%  107.25 

1914 .  687,200  5.72%  103.37 

1913 .  1,203,229  10.03%  102.64 

1912 .  1,305,772  10.88%  92.62 


This  increase  of  nearly  100  per  cent,  in  earning  power 
is  the  result  of  the  heavy  additions  to  equipment  the  com¬ 
pany  has  been  making. 

On  December  31,  1906,  net  assets  were  $2,645,135,  which 
compares  with  net  assets  of  $14,354,262  on  December  31,  1916, 
indicating  a  growth  of  nearly  $12,000,000  in  the  10-year  period. 

Officers — President — Henry  E.  Felton. 

Vice-President — W.  A.  Barstow. 

Vice-President  &  Treasurer — Wm.  M.  Hutchison. 

Secretary — E.  F.  Cook. 

Directors — The  above  mentioned  officers  In  addition  to: 

Thomas  Beaghen,  Jr.,  Abram  E.  Smith  and  E.  C. 

Sicardi. 

Transfer  Office — 26  Broadway,  New  York  City. 


VACUUM  OIL  COMPANY 

The  Vacuum  Oil  Company  was  incorporated  in  1866  under 
the  laws  of  New  York. 

Capital  Stock — $15,000,000;  par  value,  $100.  The  capital 
was  originally  $25,000,  but  it  was  increased  to  $2,500,000  in 
1903,  and  from  that  amount  to  $15,000,000  on  February  29, 
1912,  by  vote  of  the  stockholders  at  a  meeting  held  on  that 
date.  In  addition  to  the  capital  stock  outstanding,  there  were 
$2,000,000  Bonds  on  Dec.  31,  1911,  which  have  been  retired. 

Dividends — Dividends  declared  prior  to  dissolution  were 
1911,  6  per  cent.  Since  dissolution,  dividends  have  been  paid 
as  follows:  1912,  August  15th,  3  per  cent.;  October  15th, 
3  per  cent.;  1913,  May  15th,  3  per  cent.;  October  31st,  3  per 
cent.;  1914,  May  15th.  3  per  cent.;  October  31st,  3  per  cent.; 
1915,  May  15,  3  per  cent,  and  2  per  cent,  extra;  October  30. 
3  per  cent.;  1916,  May  15,  3  per  cent,  and  2  per  cent,  extra; 
October  31,  3  per  cent.;  1917,  May  15,  3  per  cent,  and  2  per 
cent,  extra. 

Properties — The  company  owns  a  refiner y  at  Olean,  N.  Y., 
producing  lubricating  and  illuminating  oils  and  gasolene,  and 
has  recently  acquired  land  on  the  Delaware  River  below 
Camden,  N.  J.,  on  which  it  is  building  another  refinery.  It 
also  has  plants  at  Rochester,  N.  Y.,  and  Bayonne,  N.  J.,  for 
the  manufacture  of  high  grade  lubricating  oils;  a  few  pipe 
lines,  and  is  interested  in  refineries  and  lubricating  oil  works 
operated  by  foreign  companies  in  which  it  has  stock  owner¬ 
ship. 

The  new  plant  of  the  company  at  Bramwell  Point,  near 
Paulsboro,  N.  J.,  which  will  be  in  operation  during  the  sum¬ 
mer  of  1917,  covers  a  plot  of  675  acres,  with  a  water  frontage 
on  the  Delaware  River  of  one  and  a  quarter  miles.  A  con- 


116 


Vacuum  Oil  Company 


Crete  bulkhead,  1,200  feet  in  length,  will  allow  ample  docking 
space  for  the  company’s  tankships.  There  are  three  and  one- 
third  miles  of  railroad  tracking  on  the  property  and  an 
eight-inch  pipe  line  has  been  laid  under  the  Delaware  River, 
connecting  with  the  main  trunk  line  of  the  Eureka  Pipe 
Line  Company  at  Essington,  Pa. 

The  buildings  now  practically  completed  are: 


Boiler  House  &  Power  Plant 

Three  Still  Houses 

Wax  Plant 

Fire  Pump  Houses 

Storehouse 


Tank  and  Boiler  Shop 
Machine  Shop 
Pipe  Shop 
Carpenter  Shop 
Pattern  Storage  House 


In  addition  there  will  be  a  tank  farm  for  crude  oil  supplies 
and  the  usual  rundown  tanks  and  storage  tanks  frr  refined 
oils.  The  company  is  also  building  an  acid  recovery  plant 
and  is  installing  a  new  sewage  treating  plant,  so  that  sewage 
discharged  into  the  Delaware  River  will  be  free  from  con¬ 
taminating  acids  aand  wastage. 

Marine  Department — Owing  to  the  company’s  extensive 
export  business,  and  its  inability  to  obtain  adequate  ocean 
transportation,  it  was  obliged  to  operate  its  own  vessels. 
Accordingly  the  company  purchased  a  cargo  vessel  during 
1915  and  contracted  for  three  additional  cargo  boats  and 
three  tank  ships.  The  “Paulsboro,”  one  of  the  largest  tank- 
ships  afloat,  and  the  “Bramwell  Point,”  the  first  American 
commercial  motor  ship,  were  added  to  the  company’s  fleet  in 


1916. 

According  to  Lloyd’s  Register  for  1916-1917,  the  following 
vessels  are  registered  under  Vacuum  Oil  Company’s  ownership: 


Vessel 

Bramwell  Point  ., 
Constable  Hook  .  . 

Gargoyle  . 

Paulsboro  . 

Rochester . 

Vacuum  . 

Emily  S.  Baymore 


Gross  Tonnage 
. .  .  3,250 

...  1,861 
. . .  4,433 

.  .  .  6,945 

.  .  .  2,551 

.  .  .  2,551 

256 


21,847 

Schedule  for  1917  Completion 
Olean  .  2,750 

The  company  does  an  extensive  export  business,  and  maln- 
i  tains  selling  organizations  in  all  parts  of  the  world  for 
the  purpose  of  marketing  its  products.  The  foreign  con¬ 
nections  of  Vacuum  Oil  Company  are  as  follows:  Vacuum 
Oil  Company,  Bombay,  for  India,  Burmah  and  Ceylon;  Vacu¬ 
um  Oil  Company,  Buenos  Ayres,  for  Argentine  and  South 
American;  Vacuum  Oil  Company,  Cairo,  for  Egypt  and  terri¬ 
tory;  Vacuum  Oil  Company,  Copenhagen,  for  Denmark  and 
Norway;  Vacuum  Oil  Company,  Helsingfors,  for  Finland; 
Vacuum  Oil  Company,  Hong  Kpng,  for  Hong  Kong,  Philippine 
Islands,  Straits  Settlements  and  Dutch  East  Indies;  Vacuum 
Oil  Company,  Kobe,  for  Japan  and  Korea;  Vacuum  Oil  Com- 
Dany,  Lisbon,  for  Portugal,  Canary  Islands  and  Morocco; 
Vacuum  Oil  Company,  Shanghai,  for  China  and  East  Siberia; 
Vacuum  Oil  Company,  R.  T.,  for  Austro-Hungary,  Greece, 
Balkan  States  and  Turkey;  Vacuum  Oil  Company  of  South 
Africa,  Ltd.,  for  all  South  Africa  and  Mauritius;  Vacuum 
Oil  Company,  S.  A.  I.,  for  Italy;  Deutsche  Vacuum  Oil  Com¬ 
pany,  for  Germany;  Vacuum  Oil  Company,  Ltd.,  for  England; 
Vacuum  Oil  Company,  Prop.,  Ltd.,  for  all  Australia  and  New 


Vacuum  Oil  Company 


117 


Zealand;  Russian  Vacuum  Oil  Company,  Ltd.,  for  Russia  and 
West  Siberia;  Vacuum  Oil  Company,  S.  A.  F.,  for  France, 
Belgium,  Holland,  Spain,  Switzerland  and  Algiers;  Vacuum 
Oil  Company,  A.  B.,  for  Sweden. 


The  company’s  financial  statement  for  1916  compares  as 
follows: 


1916  1915 

Net  Profits  .  $9,321,937  $6,861,913 

Dividends .  1,200,000  1,200,000 


Balance  to  Surplus, 


$8,021,937  $5,661,913 


Comparative  Balance  Sheets 
Assets;  1916 

Real  Est.,  Plant,  etc.,  Less  Deprec..  $10,171,581 
Stocks,  Foreign  Vac.  Oil  Companies.  .  14,243,325 

Other  Investments  .  14,533 

Government  Securities  .  15,923 

Merchandise  and  Material .  13,718,262 

Accounts  Receivable— 

From  Foreign  Vacuum  Oil  Co .  12,794,691 

From  others  .  5,740,211 

Cash  . 841,619 


1915 

$4,816,904 

14,252,584 

13,587 

15,923 

8,845,744 

6,906,385 

3,739,594 

6,333,496 


Total  Assets  .  $57,540,148  $44,924,217 

Liabilities : 

Capital  Stock  .  $15,000,000  $15,000,000 

Accts.  Payable  due  for  V.  O.  Co’s....  3,110,844  4,384,686 

Sundry  Accts  and  Bills  Payable .  6,926,803  1,223,799 

Insurance  Reserve  .  491,956  327,126 

Surplus  .  32,010,543  23,988,606 


Total  Liabilities  . .  ..  $57,540,148  $44,924,217 


After  appropriating  $164,831.16  for  insurance  reserve,  net 
profits  were  $9,221,937,  or  at  the  rate  of  61.47  per  cent, 
against  45.6  per  cent,  in  1915. 

The  company  states  that  “Expenditures  for  refinery  and 
other  construction,  payments  for  ships,  previously  contracted 
and  increased  payments  for  merchandise  and  materials  (due 
to  higher  costs)  have  made  cash  requirements  larger  during 

The  company’s  investment  in  plant  and  equipment  was 
increased  $5,354,677  after  depreciation  during  the  year,  repre¬ 
senting  capital  expended  on  the  company’s  new  refinery  and 
shipping  plant  at  Paulsboro,  N.  J.,  and  its  vessels  “Paulsboro” 
and  “Bramwell  Point,”  which  were  launched  during  the  year. 

Working  capital  increased  from  $20,216,735  to  $23,057,136 
and  the  fact  that  amounts  due  from  the  company’s  foreign 
subsidiaries  increased  from  $6,906,385  at  the  close  of  1915  to 
$18,534,903,  reflects  not  only  the  interruption  of  normal  com¬ 
mercial  intercourse,  but  the  consequent  heavy  strain  on  the 
company’s  cash  resources.  The  book  value  of  the  company’s 
stock  was  $313.43  at  the  close  of  1916,  compared  with  $197.83 
at  the  close  of  its  first  year  of  independent  operation. 

The  1916  financial  statement  permits  the  following  analysis 
of  the  company’s- development  since  the  dissolution: 


118 


Washington  Oil  Company 


Additions 


to  Plant 

Surplus  of 

Net 

Acct.  After 

Insurance 

Undivided 

Year 

Profits 

Dividends 

Depreciation  Reserve 

Profit 

1916.  . 

$9,221,937 

$1,200,000 

$5,354,677 

$164,831 

$32,540,149 

1915.  . 

6,861,913 

1,200,000 

677,113 

124,381 

23,988,606 

1914. . 

*2,075,644 

900,000 

638,682 

101,904 

18,326,693 

1913. . 

4,832,929 

900,000 

362,907 

100,840 

17,151,049 

1912. . 

4,159,000 

900,000 

14,675,275 

♦Earnings  of  foreign  subsidiaries  not  included. 


Net  assets  on  December  31,  1916,  were  $47,010,543,  against 
net  assets  of  $14,4S1,113  on  December  31,  1911,  and  net  assets 
of  $7,643,377  on  December  31,  1906. 

Officers — President — Charles  M.  Everest. 

Vice-President — Edward  Prizer. 

Vice-President — George  P.  Whaley. 

Vice-President — Charles  E.  Bedford. 

Secretary — Wendell  M.  Smith. 

Assistant  Secretary — Charles  E.  Arnott. 

Treasurer  and  Asst.  Secretary — Herbert  Baker 

Directors — C.  C.  Campbell,  Walter  M.  McGee,  R.  W.  Ev¬ 
erest,  Charles  M.  Everest,  Edward  Prizer,  George  P.  Whaley, 
Charles  E.  Bedford,  Charles  E.  Arnott. 

Transfer  Office — Rochester  Savings  Bank  Bldg.,  Rochester, 
New  York. 


WASHINGTON  OIL  COMPANY 

The  Washington  Oil  Company  was  incorporated  in  1887, 
under  the  laws  of  Pennsylvania 

Capital  Stock — The  capital  siock  is  $100,000.  Par  value  $10. 

Dividends — A  dividend  of  35  per  cent,  was  reported  paid 
in  1906.  Since  dissolution,  dividends  have  been  paid  as  fol¬ 
lows:  1911,  29  per  cent.;  1913,  February  20th,  40  per  cent.; 
December  1st,  40  per  cent.;  1914,  December  31st,  30  per  cent.; 
1916,  October  20th,  40  per  cent. 

Properties — This  is  a  crude  oil  producing  company  operat¬ 
ing  in  one  of  the  old  Pennsylvania  oil  fields.  At  the  close  of 
1913,  the  company  had  4,897  acres  of  leaseholds,  350  acres 
oil  rights,  250  acres  land  in  fee,  1  acre  on  royalty,  146  oil 
wells  and  2  gas  wells. 

The  company’s  financial  statement  for  1916  compares  as 


follows : — 

1916  1915 

Net  Profits  .  $32,985  $16,099 

Dividends  .  40,000  . 


Balance  to  Surplus .  *$7,015  $16,099 


♦Deficit. 

Assets:  1916  1915 

Producing  Plant .  $73,772  $76,770 

Stock  in  Other  Companies .  18,186  20,196 

Material  and  Merchandise  on  Hand..  29,132  24,068 

Cash  .  25,798  33,582 

Accounts  Receivable .  206  149 


Total  Assets .  $147,094  $154,767 


Washington  Oil  Company 


119 


Liabilities: 
Capital*  Stock  . 
Account  Payable 
Surplus  . 


$100,000  $100,000 

1,232  1,891 

45,862  52,876 


Total  Liabilities 


$147,094  $154,767 


Net  profits  were  at  the  rate  of  32.9  per  cent,  against  16 
per  cent,  in  1915.  The  company  distributed  a  dividend  of 
40  per  cent.  ($40,000)  part  of  which  was  taken  from  1915 
earnings  in  which  year  no  dividend  was  paid. 

Officers — President — J.  I.  Buchanan. 

Vice-President — Douglas  Buchanan. 

Secretary  and  Treasurer — J.  C.  Burford. 

Directors — The  above-mentioned  officers  and  in  addition: 

George  L.  Craig,  D.  Gregg  McGee,  M.  D.  Shields, 
G.  C.  Jolly. 

Transfer  Office — 323  Fourth  Avenue,  Pittsburgh,  Pa. 


Copyrighted  May,  1917,  by 
GENERAL  SERVICE  CORPORATION 
52  Wall  Street,  New  York 


CHRONICLE  PRESS.  ORANSt.N.J 


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